⚠️ Important Note: This article is for informational purposes only and does not constitute legal advice. Referrizer is a platform provider, not a telemarketer or seller on your behalf. You are solely responsible for ensuring compliance with all applicable laws when using our platform. Consult a qualified attorney to understand your specific obligations under Texas Senate Bill 140 (SB 140).
Overview
Effective September 1, 2025, Texas Senate Bill 140 (SB 140) amends Chapter 302 of the Texas Business and Commerce Code (Mini-TCPA) to include SMS, MMS, and image-based messages as “telephone solicitations.” This applies to marketing texts sent to Texas residents (regardless of your location) or from Texas (regardless of recipient location). Non-compliance risks significant penalties, including $500–$1,500 per text in private lawsuits and up to $5,000 per violation by the Texas Attorney General.
Who Does This Apply To?
The law targets sellers and telephone solicitors sending marketing texts/calls to induce purchases, bookings, or claims (e.g., “Book your 20% off class!”). Referrizer is a platform provider, not a seller or telemarketer for your campaigns. You, the client, are the “seller” or “telemarketer” responsible for compliance when using our tools to send SMS.
Key Definitions:
- Solicitation: Any text/call to encourage purchasing, renting, or claiming a service/product, including reminders like “Book now to redeem your deal.”
- Automated Dial Announcing Device (ADAD): Includes automated systems storing or generating numbers to send prerecorded/synthesized messages without a live operator. Referrizer’s SMS tools may qualify, so check with your attorney.
- Customers vs. Prospects: Texts to current/former customers (e.g., those who purchased) may be exempt if you’ve operated under the same name for 2+ years. “Customer” isn’t clearly defined, but likely requires a purchase or established business relationship (voluntary two-way communication). Leads/prospects are generally not exempt unless other exemptions apply.
Key Requirements
Unless exempt, you must:
- Register: File with the Texas Secretary of State ($200 fee, $10,000 bond per texting location) using Form 3401.
- Disclose Address: Include your business’s street address in texts (main and texting location, if different).
- Respect Quiet Hours: Send texts Mon–Sat 9 AM–9 PM, Sun 12 PM–9 PM.
- Avoid Prohibited Practices: Don’t claim Mini-TCPA compliance to gain trust or request payment info for “free” offers.
Penalties for Non-Compliance:
- $500–$1,500 per text (private lawsuits under Deceptive Trade Practices Act).
- Up to $5,000 per violation (Attorney General).
- Class action risk due to SB 140’s lowered lawsuit barriers.
Exemptions
You may not need to register if:
- Retail Exemption (Section 302.059(2)): You have a physical location, operate under the same name for 2+ years, and over 50% of sales are in-person (not online/text-driven).
- Current Customer Exemption (Section 302.058): You text customers who purchased (or have an established business relationship) and operate under the same name for 2+ years.
- B2B Exemption (Section 302.056): You target businesses for resale or operational use (e.g., selling software to gyms, not consumers).
Note: Leads who haven’t purchased are likely not “customers,” so texts to them (e.g., deal reminders) require registration unless another exemption applies. Consult your attorney to confirm.
Key Clarification on Leads and Exemptions
- Leads and Solicitations: If you send solicitation texts to leads (e.g., “Book your 20% off deal!”), non-exempt businesses must register. Exempt businesses (e.g., retail or current customer exemptions) can send solicitations to leads without registration only if the leads are “current customers” (likely those who purchased) or the business meets retail exemption criteria (50%+ in-person sales).
Action Steps for You
- Audit Campaigns: Use Referrizer’s analytics to identify texts sent to/from Texas. Segment customers (purchased) vs. prospects (leads). Confirmation texts (e.g., “You claimed your deal, contact us with questions”) may not be solicitations, but reminders (e.g., “Book now”) are.
- Check Exemptions: Review if you qualify for retail, customer, or B2B exemptions. Track sales (in-person vs. online) and customer status in Referrizer’s CRM.
- Register If Needed: If non-exempt, file Form 3401 with the Texas Secretary of State by September 1, 2025 ($200 fee, $10,000 bond). Consider a surety bond to simplify.
- Optimize Compliance: Use Referrizer’s opt-in forms to secure clear consent (e.g., “I agree to texts from [Your Business]. Reply STOP to opt out.”). Add your address to texts, honor opt-outs instantly, and log consents in our CRM.
- Consult Legal Counsel: Work with an attorney to confirm exemptions and obligations. Referrizer doesn’t provide legal advice—you’re responsible for compliance.
- Leverage Referrizer Tools: Use our templates for compliant texts (e.g., address included), analytics to segment audiences, and automation to enforce quiet hours.
Sample Compliant Text (Non-Exempt, Registered, Solicitation)
“From EXAMPLE Yoga, 123 Main St., Austin, TX: Your 20% off deal expires soon! Book at [yourwebsite.com]. Reply STOP to opt out.”
Sample Confirmation Text (Exempt, Non-Solicitation, No Registration Needed)
“From EXAMPLE Yoga, 123 Main St., Austin, TX: Congrats! You claimed your 20% off deal. Questions? Call [phone]. Reply STOP to opt out.”
Official Resources
Industry Feedback
Some businesses find the $10,000 bond burdensome and the registration process unclear (e.g., mailed forms, vague quarterly updates). A petition by an e-commerce SMS provider seeks to challenge SB 140’s impact on small businesses: Change.org Petition. Consider supporting it or monitoring updates, but consult your attorney before pausing Texas outreach.
Legal Disclaimer
Referrizer provides this information to help you succeed, not as legal advice. As a platform provider, we don’t act as your telemarketer or seller. You control who receives messages, what they say, and when they’re sent, making you responsible for compliance with local, state, federal, and international laws, including SB 140 and the Mini-TCPA. Consult a qualified attorney for tailored advice. By using Referrizer, you agree to our terms, including class action waivers: Referrizer Terms.
Need Help?
Our team is here to support your success. Use Referrizer’s tools to streamline compliance or contact your account manager at [[email protected]] to optimize your campaigns. Let’s keep your customers engaged and your business thriving!