Texas SB 140 for Marketers

Texas SB 140: A Guide for Marketing Agencies and SMS Service Providers

If your agency sends text messages on behalf of clients, Texas’s new telemarketing law, SB 140, needs to be at the top of your agenda. Effective September 1, 2025, this law expands regulations to cover SMS and MMS marketing, creating new duties and significant liability risks for both you and your clients. Your role as a trusted marketing partner now includes navigating this complex legal landscape.

Here’s what every outbound marketing service needs to know.

Your Responsibility Is Not Delegable

As a service provider, you are not shielded from liability. The statute defines “salespersons” broadly, and agencies or contractors acting for unregistered sellers can face Class A misdemeanor charges. At the same time, sellers remain liable for the acts of their agents. In Salaiz v. VSC Operations, a federal court confirmed that a seller was liable for its vendor’s failure to register. The message is clear: liability flows both ways.

Even SaaS platforms aren’t immune. If a platform provides managed support or knowingly ignores violations, it too may face liability under SB 140.

Bottom line: Compliance obligations cannot be outsourced. Both you and your clients must be aligned on risk management.

Key Compliance Mandates You Must Master

1. The Registration Requirement

Unless a specific exemption applies, any client sending marketing texts to Texas residents must register with the Texas Secretary of State. This major undertaking includes:

  • A $200 annual fee per location
  • Posting a $10,000 security bond
  • Submitting extensive corporate and personal information about the business’s principals

You must have a process to confirm your clients’ registration status before launching any campaign targeting Texans. There is a narrow exemption for service providers who perform at least 75% of their work for exempt clients, but relying on this requires meticulous documentation.

2. Strict “Quiet Hours”

Texas imposes more restrictive quiet hours than the federal TCPA. Unsolicited marketing texts may only be sent during these windows (based on the recipient’s local time):

  • Monday – Saturday: 9:00 a.m. to 9:00 p.m.
  • Sunday: 12:00 p.m. (noon) to 9:00 p.m.

Your campaign scheduling and automation must be configured to flawlessly respect these hours. Sending a promotional blast at 8:55 p.m. that gets delivered at 9:01 p.m. is a violation.

The Risks Have Been Magnified

SB 140 dramatically increases the consequences of non-compliance by allowing consumers to sue directly under the Texas Deceptive Trade Practices Act (DTPA). The risks for your clients (and potentially you) include:

  • Massive Penalties: Civil penalties up to $5,000 per violation (per text)
  • Treble Damages: Courts can triple damage awards for intentional violations
  • Mandatory Attorney’s Fees: Businesses must pay a winning consumer’s legal fees
  • “Unlimited” Recovery: Plaintiffs can sue the same company multiple times for different violations, with no cap on total recovery

Example of the Cost: A campaign of 3,000 non-compliant texts could create $15 million in liability at $5,000 per violation, plus attorney’s fees and potential treble damages.

A single non-compliant campaign could bankrupt a client and expose your agency to legal action. P.S. Here’s the summary your clients need.

Action Plan for Agencies

  1. Educate Your Team & Clients: Ensure everyone understands these new obligations.
  2. Audit Your Clients: Review every client who texts Texas residents. Assess their need to register and confirm their status.
  3. Update Your Contracts: Clarify compliance responsibilities and include indemnification clauses.
  4. Verify Your Technology: Confirm your SMS platform can handle Texas-specific quiet hours and maintain meticulous records of consent and opt-outs.
  5. Don’t Confuse 10DLC with State Law: Carrier-mandated 10DLC registration is separate from this state requirement.

For a complete breakdown of legislative intent, liability rules, and compliance risks, see our in-depth SB 140 pillar post.

Protect Your Agency and Your Clients

Your expertise is what your clients pay for. Don’t let a compliance blind spot damage your reputation or your bottom line.

  • Flat-Fee SB 140 Compliance Review ($1,500): A clear, actionable roadmap for you and your clients.
  • Fractional General Counsel Services (from $750/month): Ongoing legal strategy, contract review, and compliance oversight.
  • Small agencies can get unlimited support for $95 per month: Check out our momentum membership

Book a free appointment today to protect your business and add compliance expertise to your client services.