Texas SMS Marketing Law: What Ecommerce Brands Need to Know (Effective September 1, 2025)

Starting September 1, 2025, Texas will treat marketing text messages the same as telemarketing calls. This change comes through Senate Bill 140 (SB 140), which significantly impacts ecommerce brands and any business sending SMS/MMS campaigns to Texas residents.

If you send promotional texts in Texas, you may now be required to register with the state and post a $10,000 security bond — unless you qualify for an exemption.

Who Must Register?

You must register with the Texas Secretary of State and post the $10,000 bond if:

• You send marketing texts to anyone in Texas who is not your current or former customer, or
• Your business has not operated under the same name for at least two years.

Registration also comes with a $200 annual fee and requires quarterly reporting.

Who Is Exempt?

You are exempt if:

• Your business has been operating under the same name for at least two years, and
• You only send SMS campaigns to current or former customers.

Important: No paperwork is required to claim this exemption. However, you must keep records and documentation in case of an audit or lawsuit.

Other Requirements Still Apply

Even if you qualify for the exemption, Texas law still requires that you:

• Obtain proper consent (opt-in) and honor all opt-outs.
• Avoid using prohibited autodialers.
• Send texts only during permitted hours.

Want to Market Beyond Past Customers?

If your growth strategy includes building SMS lists with prospects or leads in Texas, you will need to:

• Register with the state ($200 annual fee).
• Post the $10,000 bond as security.
• File quarterly updates on your SMS activity.

Is the $10,000 Bond Worth It?

Before moving forward, ask yourself:

• How many Texans are on your non-customer list?
  Example: If you have 50,000 opt-in Texas leads, compliance may pay off.
• What is your projected revenue per contact?
  If the revenue outweighs compliance costs, the bond could be a smart investment.
• Are you prepared for litigation risk?
  Violations open the door to lawsuits under the Texas Deceptive Trade Practices Act (DTPA), which allows for treble (triple) damages plus attorney fees.

How to Identify Texas Residents

Determining who qualifies as a Texas contact is key. Common methods include:

• Phone area codes (helpful but not always accurate).
• Physical addresses (most reliable: shipping, billing, or signup).
• Other signals: IP geolocation, or state selected during opt-in.

If you don’t want to market to Texans and lack address data:

• Treat all Texas area codes as Texas residents, or
• Segment using the best available data and exclude uncertain contacts.

Texas-Based Businesses

If your ecommerce brand is headquartered in Texas, you don’t get a free pass. The same rules apply:

• Sending to non-customers = must register and post the bond.
• Messaging only past/current buyers (and meeting the 2-year same-name rule) = exempt.

Being located in Texas simply means the state has direct jurisdiction over you.

FAQs

Do I have to file paperwork if I qualify for the exemption?
No. But keep proof of your 2+ years in business and customer-only messaging.

Does this apply to non-Texas businesses?
Yes. If you send texts to Texas residents, the law applies regardless of where you’re based.

What if I use Klaviyo, Attentive, or another SMS provider?
Compliance is your responsibility. The exemption and registration are tied to your business, not the platform or agency running your campaigns.

Can I just ignore this?
Not advisable. Texans can sue directly under the DTPA, and penalties include triple damages plus legal fees.

Key Takeaway

• If you only text past buyers and your business has operated under the same name for 2+ years → Exempt (no bond, no registration).
• If you text prospects or leads in Texas → You’ll need to register, pay the $200 annual fee, and post the $10,000 bond.

👉 Action item: Audit your Texas SMS list now to determine whether expanding your outreach is worth the compliance cost.