Texas Raises the Stakes on Telemarketing Compliance

The Texas Governor has officially signed Senate Bill 140 (SB140), which is set to take effect on September 1, 2025. SB140 expands the scope of what constitutes telemarketing under Texas’ telemarketing registration and call disclosures law and introduces powerful new enforcement mechanisms for violations of the state’s core telemarketing rules. If your business relies on phone calls, text messages, or digital outreach to connect with customers, this law amplifies risk by making telemarketing violations even more costly.

Expanded Telephone Solicitation Definition

SB140 expands the definition of “telephone solicitation” in Texas Business & Commerce Code § 302.002, which pertains to telemarketing registration and call disclosures, to include not just voice calls, but also text messages, image messages, and other digital transmissions. If your message promotes a product or service and reaches a consumer’s phone, it’s now considered telemarketing under Texas’ telemarketing registration and call disclosures law and is subject to the same rules as traditional voice calls.

Private Right of Action

The bill doesn’t stop at redefining terms. It also arms consumers with powerful new tools to fight back against core telemarketing violations:

• Texas Business & Commerce Code § 302.001 et seq. (telemarketing registration and call disclosures): This law had already declared that a violation is considered a “false, misleading, or deceptive act or practice” under the Texas Deceptive Trade Practices Act (TDTPA) and grants individuals the right to sue businesses directly under the TDTPA for such a violation. SB140 clarifies that a claimant who has previously recovered damages for a violation of this law can still recover for subsequent violations.
• Texas Business & Commerce Code § 304.001 et seq. (do not call, fax, and caller ID): This law already allows a private right of action for a second or subsequent violation of the do not call rules, if the individual notifies the telemarketer and the Public Utility Commission or Attorney General, and no administrative action is taken within 120 days. Further, this law already allows a private right of action for any violation of the fax rules. SB140 bolsters the remedies available under this law by clarifying that any violation is considered a “false, misleading, or deceptive act or practice” under the TDTPA and grants individuals the right to sue businesses directly under the TDTPA for such a violation. Additionally, SB140 clarifies that a claimant who has previously recovered damages for a violation of this law can still recover for subsequent violations.
• Texas Business & Commerce Code § 305.001 et seq. (automatic dial announcing device and fax): This law already grants a private right of action for any violation of this law or the TCPA. SB140 enhances remedies by stating that any violation of this law is a “false, misleading, or deceptive act or practice” under the TDTPA, allowing individuals to sue businesses directly. It also clarifies that claimants can recover for subsequent violations, even after previous recoveries.

Under the private right of actions enumerated in the telemarketing laws, consumers can seek actual damages or statutory damages of $500, with the potential for treble damages in cases of willful misconduct. The damages available to a consumer under the TDTPA include economic damages, mental anguish damages, additional damages for knowing or intentional conduct, injunctive relief, restoration of money or property, and attorney’s fees and court costs.

SB 140 does not clarify how the private right of action under telemarketing laws interacts with the private right of action under the TDTPA. This ambiguity may encourage litigants to pursue claims under both statutes, potentially resulting in substantial cumulative damages for each violation. It remains to be seen how courts will interpret and address this overlap.

Preparing for Compliance

It’s time to take a hard look at your marketing practices. With an effective date of September 1, 2025, businesses have a narrow window to prepare. Here are a few steps to help ensure compliance:

• Register as a Telemarketer – ensure your business is properly registered with the Texas Secretary of State, especially given the inclusive definition of “telephone solicitation” under the telemarketing registration law.
• Review Call Disclosures – make sure your telemarketing calls and texts include applicable disclosures.
• Update Consent Mechanisms – ensure you have clear, documented consent for all communications, especially those initiated via automated or mass messaging platforms.
• Honor Opt-Outs Promptly – implement robust systems to track and honor opt-out requests across all channels.
• Train Your Teams – educate marketing, sales, and customer service teams on the new rules and significant consequences of noncompliance.

Yes, Texas has upped the ante for telemarketing. But while it raises the bar for compliance, it also offers businesses an opportunity to strengthen trust and transparency with consumers.

Questions about how SB140 or other telemarketing regulations apply to your marketing initiatives? We can help.