Relating to certain definitions relating to the regulation of and private rights of action arising from certain solicitation-related communications.
CriticalImmediate action required
High Cost
Effective:2025-09-01
Enforcing Agencies
Office of the Attorney General (Consumer Protection Division) • Private Plaintiffs (via Private Right of Action under DTPA)
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025 (Conduct occurring on/after this date triggers liability; systems must be updated *before* this date).
Agency Rulemaking: While no specific rulemaking deadline is set, the Office of the Attorney General (OAG) will likely issue enforcement guidelines regarding the new definitions. The period between now and September 2025 is the only window to sanitize data.
Immediate Action Plan
Immediate: Audit all automated SMS/MMS workflows to ensure they are integrated with Texas DNC scrubbing tools.
By May 1, 2025: Review and amend all third-party marketing vendor contracts to shift liability for DTPA violations.
By July 1, 2025: Segregate legacy consumer data. Do not send "image" or "graphic" based texts to older leads unless you re-acquire specific consent.
By August 2025: Conduct "Red Team" testing on direct mail campaigns to ensure inbound call handling meets solicitation disclosure standards.
Operational Changes Required
Contracts
Vendor Indemnification: You must amend Master Services Agreements (MSAs) with all third-party marketing agencies and lead generators. Insert strict indemnity clauses covering Texas Business & Commerce Code Chapters 302, 304, and 305.
Lead Acquisition: Purchase agreements for consumer data must be updated to require warranties that "prior express written consent" explicitly covers the transmission of graphics and images, not just text or voice.
Hiring/Training
Inbound Call Scripts: Because SB140 defines calls resulting from direct mail (postcards/letters) as "telephone solicitations," intake staff must be retrained to provide specific statutory disclosures immediately upon answering these calls.
Marketing Compliance: Marketing teams must be trained that sending an image (MMS) now carries the same legal weight and scrubbing requirements as a cold call.
Reporting & Record-Keeping
SMS/MMS Scrubbing Logs: You are required to maintain time-stamped audit trails proving every mobile number was scrubbed against the Texas Do-Not-Call list prior to transmission.
Consent Granularity: Update CRM fields to distinguish between consent for "text" and consent for "images/graphics." Legacy consent forms may be insufficient for MMS campaigns under the new "liberal construction" standard.
Fees & Costs
Litigation Exposure: The primary cost driver is the integration with the DTPA, allowing for treble damages (3x actual damages) per violation.
Insurance Premiums: Expect increases in Cyber or Media Liability premiums. You must verify that your policy covers statutory violations and DTPA claims, as standard General Liability policies often exclude them.
Strategic Ambiguities & Considerations
"Graphic Message or Image": The statute does not define the threshold for a "graphic." It is unclear if a standard company logo in an email signature sent via mobile, or a link preview generated by a smartphone, constitutes a "graphic message." Until clarified by case law, assume *any* visual element triggers the statute.
Liberal Construction: The bill explicitly mandates that courts construe the law "liberally" to protect consumers. In borderline cases regarding consent or definitions, courts are instructed to rule against the business.
Legacy Data: The law applies to conduct after September 1, 2025, but does not explicitly grandfather existing consent. Using a pre-2025 list to send post-2025 image messages is a high-risk activity if the original consent did not specify "images."
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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
In 2001, the 77th Legislature passed H.B. 472 to create the Texas Telemarketing Disclosure and Privacy Act and required it to be "liberally construed and applied to protect the public against false, misleading, or deceptive practices." With H.B. 2278, the 80th Legislature updated the definition of a "telephone call" to include a call to a mobile phone number. S.B. 1969, from the 81st Legislature, further updated the definition to include text messaging.
Both Chapters 302 (Regulation of Telephone Solicitation) and 304 (Telemarketing) of the Business and Commerce Code concern telephone solicitation. The Chapter 304 definition of "telephone call" includes text messaging. However, Chapter 302 does not define "telephone call" and does not contemplate text messaging.
For example, in a 2022 court case, Powers v. One Technologies, the plaintiffs alleged they received unsolicited, unlawful text messages. The court ruled that a company that sent text messages did not qualify as a telemarketer under Texas law. The court reasoned that, since the telemarketing company sent text messages and did not make calls, the defendant did not violate the law because Business and Commerce Code Chapter 302 does not define "call" or include any statute contemplating text messages. Powers serves as an example of how the omission allows companies to send unauthorized text messages with little recourse for Texas citizens.
This Bill Would:
Amend Chapter 302 of the Business and Commerce Code to add the definition of "telephone call," as found in Chapter 304.
Additional Information:
S.B. 315 passed during the 88th Regular Session, but was vetoed by the governor. The justification for the veto was unclear.
As proposed, S.B. 140 amends current law relating to the definition of telephone call for purposes of regulating telephone solicitations.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 302.001, Business & Commerce Code, by adding Subdivision (6-a) to provide that "telephone call" has the meaning assigned by Section 304.002 (Definitions).
Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB140 by Hall (Relating to the definition of telephone call for purposes of regulating telephone solicitations.), As Introduced
No significant fiscal implication to the State is anticipated.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 307 Secretary of State
LBB Staff:
JMc, CMA, LCO, JKe
Related Legislation
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SB140 fundamentally alters Texas marketing law by legally equating text messages and image transmissions with voice calls, while simultaneously classifying violations as "false, misleading, or deceptive acts" under the Texas Deceptive Trade Practices Act (DTPA). This legislation exposes any business using SMS marketing or direct mail to treble damages and mandatory attorney’s fees, removing previous defenses regarding prior damage recovery. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (Conduct occurring on/after this date triggers liability; systems must be updated before this date).
Q
Who authored SB140?
SB140 was authored by Texas Senator Bob Hall during the Regular Session.
Q
When was SB140 signed into law?
SB140 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce SB140?
SB140 is enforced by Office of the Attorney General (Consumer Protection Division) and Private Plaintiffs (via Private Right of Action under DTPA).
Q
How urgent is compliance with SB140?
The compliance urgency for SB140 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of SB140?
The cost impact of SB140 is estimated as "high". This may vary based on industry and implementation requirements.
Q
What topics does SB140 address?
SB140 addresses topics including business & commerce, business & commerce--general, utilities, utilities--telecommunications and telephones & telephone directories.
Legislative data provided by LegiScanLast updated: November 25, 2025
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