
The New Texas Law That Could Bankrupt Your Small Business With One Text Message
And why SMS might be the worst marketing channel to gamble on right now.
Small businesses love texting customers because it feels personal and direct. Get their name, email, phone number, send a quick reminder or offer — easy. But with the new Texas SB 140 update, one innocent message can turn into a five-figure mistake you never saw coming.
And the worst part?
You can violate the law accidentally, even if you had no idea where the person lived.
Let’s start right where the danger is loudest.
🔥 Texas SB 140: The Law That Can Nail You Even If You Didn’t Mean To Break It
Texas expanded its telephone-solicitation law to include text messaging.
Your marketing SMS is now treated exactly like a telemarketing call.
That means strict rules, required registration, and lawsuits on the table — even for tiny local businesses.
Here’s how easily it can happen:
Accidental violation scenario
Someone fills out your form.
You collect name, email, phone number.
You send a simple promo text.
They happen to be a Texas resident.
Their area code is from another state.
You had no clue.
You’re now in violation of Texas law.
That’s how fast this goes wrong.
CRMs don’t verify where someone lives.
Phone numbers don’t reveal residency anymore.
Intent doesn’t matter — compliance does.
📜 Full Outline of Texas SB 140 (In Plain English)
Texas now treats marketing texts as formal telemarketing. Here’s what that means for businesses:
1. Marketing SMS = Telemarketing
Any message that promotes, sells, or encourages a booking is telemarketing under Texas law.
Appointment reminders or receipts are safe only if they contain zero promotions.
2. You need express written consent
This must be:
Separate
Clear
Voluntary
Documented
Not bundled into a purchase or hidden in terms
Just having their phone number is NOT consent.
3. Telemarketer registration may be required
If you send marketing texts to Texas residents, you may need to:
Register with the Texas Secretary of State
Pay the fee
Post a $10,000 bond
Renew when required
Keep documentation
Most small businesses don’t know this step exists.
4. Restricted texting hours
Marketing texts can only be sent:
Mon–Sat: 9am–9pm
Sunday: Noon–9pm
One automated text outside that window = violation.
5. You must identify your business in every message
If your identity isn’t clear, it’s illegal.
No vague promos. No mystery texts.
6. You must honor opt-outs immediately
“STOP” must stop all marketing instantly.
You need suppression lists to guarantee it.
7. Texas customers can sue you directly
This is the part that hits hardest.
SB 140 opens the door to private lawsuits under the Texas Deceptive Trade Practices Act.
Penalty: up to $5,000 per violation + attorney fees.
One wrong message can wipe out a month of revenue.
8. You need airtight records
You must keep:
Proof of consent
Exact message logs
Opt-out logs
Registration proof
Time/date of every message
Copies of the consent language they agreed to
If you can’t prove compliance, you lose by default.
🌎 Other States Are Already Doing This Too
Texas isn’t alone — it’s just one of the most aggressive.
Arizona
HB 2312 bans unsolicited text ads entirely.
No consent = illegal. No wiggle room.
Florida
Their Mini-TCPA is notorious for lawsuits targeting small businesses.
California, Colorado, Connecticut, New Jersey
They all enforce extra rules around:
Consent
Message timing
Do-Not-Call lists
Marketing vs transactional wording
More states are drafting copycat bills
Legislators love “consumer protection” wins.
These laws are multiplying, not going away.
⚠️ The Real Risk: You Don’t Know Where Someone Lives
This is why SMS is so dangerous now.
People move between states
Many keep old area codes
CRMs don’t track residency
The law treats “I didn’t know” as irrelevant
A simple form that collects name, email, phone?
That’s not enough anymore.
The days of “just text them” are over.
❌ Should Small Businesses Even Do SMS Marketing Now?
Unless you have:
Verified state of residence
Clear written consent
Time-zone control
Suppression lists
Compliance tracking
Stored legal documentation
Telemarketer registration where required
…SMS marketing is a legal gamble.
A single message can cost you more than a full year of profit.
For many small businesses, SMS isn’t worth the risk.
✔️ There Are Safer, Smarter Ways to Follow Up
You can still get great results without inviting legal trouble:
Email
Voicemail drops
Retargeting ads
Fast lead follow-up
Appointment nurture sequences
Google Business Profile optimization
On-site conversion systems
All of these can outperform SMS without the legal dynamite strapped to them.
Want a safer way to grow without stepping on legal landmines? Book a quick call and I’ll walk you through what actually works.