Texas - New Business and Commerce Code Updates for SMS

New Texas Laws Affecting Marketing Text Messages

Disclaimer: This article is for educational and informational purposes only and should not be considered legal advice. Laws can change and may apply differently depending on your situation. We strongly recommend consulting with a qualified legal professional to ensure your business remains compliant.

What’s changing?

Starting September 1, 2025, Texas is updating its Business and Commerce Code. Previously, the law only applied to marketing phone calls. With the new changes, text messages are now included in the definition of “telephone solicitation.”

This means that if your business:

  • Sends marketing text messages to Texas residents, or

  • Is located in Texas and sends marketing texts

…you may need to register with the Texas Secretary of State

Quiet Hour Restrictions: Marketing or promotional texts may not be sent to recipients in Texas during the following times, based on the recipient’s local time zone:

  • Monday–Saturday: 9:00 p.m. – 9:00 a.m.

  • Sunday: 12:00 p.m. (noon) and after 9:00 p.m.

Registration Requirements: Businesses sending marketing or promotional text messages to a recipient in Texas or from a location in Texas may be required to register with the Texas Secretary of State, unless an exemption applies.


Private Right of Action: The law now allows individuals to bring lawsuits directly against a sender for alleged violations under the Texas Deceptive Trade Practices Act (DTPA). Potential damages may include attorneys’ fees and treble damages for intentional violations.

For reference:

Who is exempt?

Not every business is required to register. Some exemptions include:

  • Publicly traded companies and their subsidiaries

  • Certain financial institutions

  • Educational institutions

  • 501(c)(3) nonprofits

  • Businesses marketing the sale of food

  • Retail businesses with a physical storefront, operating under the same name for at least two years, where most sales happen in-store

  • Businesses contacting their current or former customers if they’ve operated under the same name for at least two years

Be sure to review the exact language of the law to see if your business qualifies for an exemption.

How do I register?

If your business needs to register, here’s what you should know:

  • Application fee: $200

  • Renewal: Required annually

  • Security deposit: $10,000 (required under Texas law)

The deposit can be satisfied in a few different ways:

  • Surety bond (most common, typically a small annual fee instead of the full $10,000)

  • Irrevocable letter of credit

  • Certificate of deposit

⚠️ Note: Your registration is only valid once the Texas Secretary of State issues a registration certificate, not when you submit your application.

Next steps

  1. Review your text messaging practices to see if these new rules apply.

  2. Determine if your business qualifies for an exemption.

  3. If not exempt, plan to complete registration before September 1, 2025.

  4. Speak with qualified legal counsel for guidance tailored to your business.

  5. Reach out to the Texas Secretary of State for official instructions or additional questions.

 

FAQ

Where can I find Registration Form

The registration form can be found here: https://www.sos.state.tx.us/statdoc/forms/3401.pdf

How do I file?

From https://www.sos.state.tx.us/corp/filingandothergeneralfaqs.shtml

Filings may be submitted by the following methods.  If the filing is submitted with an extra copy, upon filing, the extra copy will be file-stamped and returned to the submitter with evidence of filing.  Don’t forget to include payment with your documents.

  • Online: SOSDirect (electronic filing of many, but not all, types of documents)
  • Fax: (512) 463-5709
  • Mail: Corporations Section
    P. O. Box 13697
    Austin, Texas 78711-3697 
  • Delivery: James Earl Rudder Office Building
    1019 Brazos
    Austin, Texas  78701

    Documents sent by courier or Federal Express should be sent to the delivery address. 

 

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