Texas Governor Signs Bill to Hurt Small Business Owners from Texting Their Customers

On September 1, 2025, a new law will go into effect in Texas that could have serious consequences for small business owners. Senate Bill 140 (SB140), recently signed by Governor Greg Abbott, changes the way Texas regulates SMS and MMS communications.

While framed as “consumer protection,” the bill effectively penalizes small businesses that rely on text messaging to stay in touch with their customers. Texting is the most direct and personal channel for customer communication — yet this law adds new financial and legal burdens that disproportionately impact small operators.

 

What SB140 Does

SB140 expands the definition of telephone solicitation to include text messages (SMS and MMS). That means:

• Text marketing is now subject to the Texas Deceptive Trade Practices Act (DTPA)

• Consumers can sue businesses directly for violations

• Small businesses must navigate registration requirements previously limited to telemarketers

 

The New Burden on Business Owners

Starting September 1, any business that texts Texas residents — or operates out of Texas — must:

• File a Telephone Solicitation Registration Statement

• Submit a $200 filing fee

• Post a $10,000 security deposit (bond, irrevocable letter of credit, or certificate of deposit)

• Renew this registration every year

For a small retailer, range, cigar shop, or family-owned business, that’s a crushing cost just to continue texting loyal customers who asked to hear from them.

 

Who’s Really Protected?

This law doesn’t hit everyone equally. SB140 carves out broad exemptions that let big players keep texting while small businesses pay the price.

Exemptions include:

• Publicly traded corporations (and their subsidiaries/agents)

• Supervised financial institutions and certain insurance-licensed entities

• Educational institutions and 501(c)(3) nonprofits

• Companies already regulated by the Public Utility Commission of Texas or FCC-licensed entities

• Retailers operating under the same name for 2+ years where the majority of sales are in-store

• Businesses contacting current or former customers (including repair/service messages), provided they’ve operated under the same name for at least two years

• B2B transactions where the purchase is for resale, recycling, remanufacturing, or manufacturing

• Solicitors only arranging face-to-face presentations, not completing sales by phone

• Certain niche categories (food sales, long-standing catalogs, media subscriptions, isolated one-off transactions)

In other words: Wall Street companies, banks, and universities don’t need to worry. Your local shop down the street does.

 

Quiet Hours and Do-Not-Call Lists

The law also reinforces Texas-specific restrictions:

• No texts before 9 a.m. or after 9 p.m. Monday–Saturday

• No texts before noon or after 9 p.m. on Sundays

• Heavier enforcement on both the Texas Do-Not-Call lists and the National Do Not Call Registry

Combined with new registration costs, these rules create an environment where small businesses face compliance landmines at every turn.

 

How OtterText Will Help Texas Businesses

We know this law is unfair to small business owners, and we’re not leaving you to face it alone. At OtterText, we’ve diverted our development sprint to build tools and resources to support Texas clients, including:

• Step-by-step guidance to complete state registration paperwork

• Direct links to the registration form, required forms, and official FAQ

• AI segmentation to exclude Texas residents based on addess and area code from campaigns if you choose not to register

• Custom quiet hours specifically for Texas, built directly into your OtterText dashboard

• Compliance tools to manage Do-Not-Call scrubs, consent tracking, and opt-outs

 

Resources for Small Business Owners

• Texas SB140 Bill Text (Capitol.Texas.gov)

• Telephone Solicitation Registration Statement

• Texas Secretary of State – Other Forms

• Texas Secretary of State – FAQ

 

Standing With Small Business Owners

You’re fine until September 1, 2025 — but act now so you’re ready on day one. To help offset the burden, OtterText will grant $200 in texting credits to verified Texas businesses. Because while the Governor may have signed SB140 into law, we’re on your team.

 

Final Thoughts

SB140 doesn’t protect consumers the way it claims. It protects big corporations while making it harder for small businesses to compete.

At OtterText, we’re committed to fighting for small business owners, keeping you compliant, and making sure unfair regulations don’t silence your voice.

We’re on your team — and we’ll keep you texting.