Texas SB 140: What Small Businesses Need to Know About the New SMS & Outreach Law

As of September 1, 2025, a major shift in Texas marketing regulations is taking place—and small businesses need to pay close attention. The new Texas Senate Bill 140 (SB 140) expands the definition of telemarketing to include SMS, MMS, and certain digital outreach methods.

For many local businesses, SMS has been a trusted and cost-effective way to reach customers. But under SB 140, that same text could now expose your business to legal and financial risks if not handled properly. At Eubuleus Digital Strategies, we believe in helping small businesses navigate these changes so they can focus on growth while staying compliant.

Breaking Down SB 140

What Is SB 140?

SB 140 amends Texas Business & Commerce Code Chapter 302—the state’s telemarketing law. Before, the law focused primarily on calls. Now, the updated rules apply to:

• SMS text messages

• MMS/image messages

• Certain other digital communications designed to promote goods or services

Key Requirements for Businesses

If you’re engaging in SMS or MMS outreach to Texas residents, you may now be required to:

• Register with the Texas Secretary of State

• Pay a $200 annual filing fee

• Post a $10,000 bond or security deposit

These requirements apply even if you’re a small business using SMS platforms for promotions or customer outreach.

Expanded Consumer Rights

Perhaps the most important change: consumers now have the right to directly sue businesses they believe are in violation. This is different from the past, where complaints had to go through a state agency first.

Penalties can include:

• $500–$1,500 per violation

• Treble damages for knowing or intentional violations

• Attorneys’ fees and court costs

• Unlimited repeat lawsuits under the Texas Deceptive Trade Practices Act (DTPA)

Limited Exemptions

Some organizations may be exempt, such as:

• Nonprofits and educational institutions

• Businesses with existing customer relationships of at least 2 years under the same name

• Certain financial institutions and food businesses

However, exemptions are narrow and require documentation—most small businesses won’t automatically qualify.

What This Means for Small Businesses

For small businesses that rely on texting for promotions, reminders, or updates, this law changes the landscape. The risks of continuing without compliance are high, especially since even one text could trigger costly lawsuits.

That doesn’t mean communication has to stop altogether. It does mean businesses need to reassess their outreach strategies and make thoughtful, informed decisions about how to market moving forward.

Moving Forward: Cautionary Steps

1. Audit Your Outreach – Review if your business uses SMS, MMS, or related messaging.

2. Consult Legal Counsel – Determine whether you need to register or if exemptions apply.

3. Strengthen Consent Practices – Document opt-ins, and ensure opt-outs are immediate and reliable.

4. Consider Safer Alternatives – Use email, social media, websites, and inbound channels that aren’t affected by SB 140.

5. Stay Updated – Laws evolve. Keep monitoring compliance requirements to avoid surprises.

Closing Thoughts

We know laws like SB 140 can feel overwhelming—especially for small businesses already juggling so much. At Eubuleus Digital Strategies, our goal is to help you stay informed and adapt your marketing in ways that protect your business while keeping your customers engaged.

⚠️ Important Note: This article is for informational purposes only and does not constitute legal advice. We encourage every business owner to consult qualified legal counsel before making decisions about compliance with SB 140 or any other regulations.

By approaching this change with caution, preparation, and the right support, your business can continue to thrive in Texas’s evolving digital landscape.

At Eubuleus Digital Strategies, we help small businesses grow by building strong digital foundations. From custom websites and hosting to marketing strategies and consulting, we focus on creating practical solutions that connect businesses with their communities. Our mission is to provide wise counsel and effective tools so local businesses can thrive in an ever-changing digital world.