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Complying with the Texas Business and Commerce Code for SMS Marketing

Ira avatar
Written by Ira
Updated today

Effective September 1, 2025, businesses sending promotional SMS/MMS messages to Texas residents must comply with Senate Bill 140 (SB 140).

This guide outlines who is affected, what changes are coming, how to stay compliant, and how Omnisend can help.

Disclaimer: This guide is provided for general informational purposes only and does not constitute legal advice. Omnisend makes no representations or warranties regarding the accuracy, completeness, or applicability of the information contained herein, and assumes no responsibility or liability for any actions taken based on it. You should consult qualified legal counsel to obtain advice with respect to any particular legal matter.


Overview: What’s Changing?

SB 140 redefines telephone solicitation to include SMS and MMS messages sent with the intent to advertise or sell goods or services.

Key Updates:

  • SMS/MMS promotions are now regulated as telemarketing.

  • Non-compliance can be prosecuted under the Texas Deceptive Trade Practices Act (DTPA).

  • Individuals may file lawsuits and claim up to 3x actual damages.

  • More consumer protections mean a higher risk for businesses not following the law.

Who Is Affected?

Any business or third-party vendor that sends promotional SMS/MMS to:

  • Contacts with Texas area codes

  • Customers with a Texas mailing or billing address

Examples of messages covered under SB 140:

  • Welcome series

  • Abandoned cart reminders

  • Product launches or deals

  • Automated or manual promotional texts

Even if you are already TCPA-compliant, you must adhere to Texas-specific requirements beginning September 1, 2025.

Possible Exemptions

Some entities may be partially or fully exempt. Common exemptions include:

Category

Examples

Nonprofits & Education

501(c)(3) organizations, schools

Public Companies

SEC-registered businesses

Financial Entities

Banks, credit unions, insurers

Food Sellers

Grocery, meal delivery services

Repair & Service Providers

Following up with existing customers

Retailers with Storefronts

Physical stores (2+ years under same name)

B2B Suppliers

Selling to businesses for resale/manufacturing

Always consult legal counsel to confirm your eligibility for exemption.

Action Steps for Compliance

Here’s a checklist to get your SMS program compliant with SB 140:

Step

What to Do

1️⃣ Review Audience

Use Omnisend segmentation to identify TX-based contacts (area code or address).

2️⃣ Register (If Required)

Check if you must register as a telemarketer with the Texas Secretary of State. This may involve a filing fee and bond.

3️⃣ Use Texas DNC List

Suppress messages to numbers on the Texas Do Not Call (DNC) registry unless they opted in directly.

4️⃣ Update Disclosures

Add clear disclosures in SMS: identify your brand, state it's a promo, and include opt-out (e.g., “Reply STOP”).

5️⃣ Document Consent

Keep records of all opt-ins—how, when, and where they were obtained.

6️⃣ Train Your Team

Educate staff and vendors on SB 140, and update SMS-related contracts.

How Omnisend Supports Compliance

Omnisend provides built-in tools to help you meet SB 140 requirements:

  • Segmentation by location (area code or address)

  • TCPA-compliant opt-in capture (popups, forms, automation)

  • Automatic opt-out management (via “STOP” replies)

To create a Texas SMS Subscribers segment, use our pre-built template. For this, go to Audience → Create segment → Search for "Texas SMS Subscribers" → Customize. Exclude this segment from your communication. 

Final Takeaway

Starting September 1, 2025, SMS = telemarketing in Texas.

Failure to comply can result in:

  • Lawsuits from recipients

  • Civil penalties and damages

  • Brand reputation harm

Note: Email marketing is not affected, but continue following CAN-SPAM and other federal laws.

Unsure if SB 140 applies or if you're exempt? → Contact your legal team for guidance.

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