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New Texas SMS Marketing Law:

What eCommerce Brands Must Know

Before September 1, 2025

If you're running SMS campaigns and have customers or prospects in Texas, there's a major regulatory update you can't afford to ignore. Beginning September 1, 2025, the state of Texas will officially treat SMS and MMS promotional messages as telemarketing calls, which triggers a whole new set of legal requirements for eCommerce businesses.

Whether you're a seasoned brand or a startup, this guide breaks down everything you need to know to stay compliant, protect your brand, and continue reaping the benefits of SMS marketing in the Lone Star State.

What’s Changing in Texas?
Do You Need to Register?
Who Qualifies for an Exemption?
What Requirements Still Apply (Even if You're Exempt)?
Planning to Grow Your List in Texas?
Is Posting the $10,000 Bond Worth It?
How Can You Tell If a Contact Is in Texas?
What If Your Business Is Based in Texas?
Final Thoughts

What’s Changing in Texas?

Under the new law, promotional text messages are now classified as telemarketing calls. This means that, depending on your business model and how you source leads, you may need to:

Register with the Texas Secretary of State
Post a $10,000 surety bond
File quarterly reports
Or ensure you qualify for an exemption

It doesn’t matter where your business is located—if you send messages to Texas residents, you must follow these rules.

Do You Need to Register?

You must register and post a $10,000 bond if:

You send promotional SMS messages to contacts in Texas who are not current or past customers, and
Your business has been operating under its current name for less than two years

This applies regardless of whether those recipients explicitly opted in.

Who Qualifies for an Exemption?

Good news: many established brands won’t need to register or post a bond. You’re exempt if:

Your business has been operating under the same name for at least two years,
And you only send SMS messages to current or past customers

You don't need to submit paperwork to prove this, but you must retain documentation showing why you're exempt in case of audits or disputes.

Examples of documentation include:

Order history records
Customer registration logs
Subscriber opt-in forms

What Requirements Still Apply (Even if You're Exempt)?

Regardless of whether you’re required to register, you must continue to comply with other applicable laws, including:

Consent: You must have valid, documented consent before sending marketing texts
Opt-out compliance: You must honor “STOP” requests or any opt-out signals promptly
Sending windows: Avoid sending messages outside of permitted hours in Texas
Technology restrictions: Avoid the use of prohibited autodialing systems

Planning to Grow Your List in Texas?

If your strategy includes acquiring new leads in Texas, keep this in mind:

To legally send promotional texts to prospects (not yet customers), you must:

Register with the Texas Secretary of State
Post a $10,000 surety bond
File quarterly reports that detail your SMS outreach activities

These requirements apply even if the recipients opted in, unless they’ve previously done business with you.

Is Posting the $10,000 Bond Worth It?

It depends.

Ask yourself:

How many opted-in Texas contacts do you have who haven’t purchased yet?
What’s your average revenue per SMS subscriber?
How much risk tolerance do you have for potential legal disputes or penalties?

Keep in mind, violations of this law could result in triple damages under the Texas Deceptive Trade Practices Act (DTPA). So if you decide to pursue prospects in Texas, make sure the return outweighs the compliance costs.

How Can You Tell If a Contact Is in Texas?

Texas regulators won’t tell you exactly how to determine residency, but here are common methods:

Area code: Not always reliable (people move)
Shipping or billing address: More accurate, especially during checkoutWhat’s your average revenue per SMS subscriber
Account registration location
IP geolocation
Self-declared state field in a form

If in doubt, assume the person is a Texas resident or exclude the contact from your SMS list to avoid risk.

What If Your Business Is Based in Texas?

There are no special advantages if your company is located in Texas.

If you're targeting new leads or cold contacts in the state, you must still register and post the bond unless you're exempt under the two-year rule and only message past or current customers.

Final Thoughts

The new Texas law reflects a broader trend in consumer privacy and SMS regulation. Other states could follow with similar legislation, so it's a good idea to start:

Auditing your SMS contact list
Segmenting Texas residents
Evaluating your opt-in documentation
Reassessing your lead acquisition plans in Texas

Above all, stay proactive. Texas isn’t banning SMS marketing—but it is raising the stakes. Smart brands will adjust early and use this as a chance to double down on compliant, high-quality subscriber engagement.

Helpful Resources

Disclaimer: This information is provided for educational purposes only and does not constitute legal advice. Businesses should consult qualified legal counsel to ensure compliance with Texas law.