Texas has enacted a major change to its telemarketing law that directly affects text message marketing. Effective September 1, 2025, Texas Senate Bill 140 (SB 140) significantly expands the state’s telemarketing regulations to cover marketing by text message (SMS and MMS). In short, any business that sends marketing texts to Texas residents (or from within Texas) is now subject to Texas telemarketing law requirements – even if your company is not based in Texas. Failure to comply can lead to severe consequences, including hefty civil penalties and private lawsuits under the Texas Deceptive Trade Practices Act (DTPA).

If you use coreILLA to communicate with your customers, it’s crucial to understand this new law. In this article, we’ll explain who is covered, what the law requires, and how you can protect your business while using coreILLA to stay compliant. We want to ensure you’re informed and prepared, so you can continue texting your customers safely and legally – because Coreware truly cares about our customers’ success and compliance.

What is SB 140 and Why Does It Matter?

SB 140 is a new Texas law that treats marketing text messages the same as telemarketing calls. Texas’s existing telemarketing statute (Business & Commerce Code Chapter 302) used to apply only to telephone calls. SB 140 closes a loophole that previously excluded texts: it amends the definition of “telephone solicitation” to explicitly include “transmission of a text or graphic message or of an image” intended to induce a purchase. In other words, promotional SMS, MMS, or image-based messages are now regulated just like telemarketing calls in Texas. This change was prompted by cases like Powers v. One Technologies (2022), where a court ruled texts weren’t covered under the old law. Texas’ response via SB 140 is sometimes nicknamed a “mini-TCPA,” because it creates rules similar to the federal Telephone Consumer Protection Act (TCPA) but with some state-specific twists.

Why this matters: If you text any Texas resident for marketing, you may now be required to register with Texas as a telemarketer, obtain specific consent, honor opt-outs, follow “quiet hours,” and more (detailed below). Notably, out-of-state businesses are not exempt – Texas asserts jurisdiction if you send marketing texts into Texas. Even if your company is elsewhere, reaching customers on Texas phone numbers brings you under this law. Manual texting isn’t a loophole either: Chapter 302 has always applied regardless of autodialer use, so even one-by-one texts count. In short, any coreILLA user engaging in SMS marketing to Texas must pay attention.

Finally, SB 140 also amps up enforcement: it hooks violations into Texas’s powerful consumer protection law (the DTPA). Every text sent in violation of these rules is now potentially a deceptive trade practice, opening the door to lawsuits and damages. Texas has made it easier for consumers (or class action lawyers) to sue text marketers directly – so compliance isn’t just about avoiding fines from regulators, but avoiding costly lawsuits from recipients.

Who Is Covered by the New Law?

Under SB 140, most businesses that send marketing texts to Texas residents are covered. The law applies to any “seller” or “telephone solicitor” engaging in “telephone solicitation” – now defined to include marketing texts and images. You do not need to be physically in Texas to be covered; if you send texts to consumers in Texas, you fall under this law. Conversely, if you are in Texas and send marketing texts (even to people in other states), you are likely covered as well.

Examples: A firearms retailer in Louisiana using coreILLA to text promotions to customers in Texas is covered. A Texas-based sporting goods store texting offers to customers in California is also covered (because the sender is in Texas). Essentially, any marketing text that touches Texas – either the sender or the recipient – triggers the law’s application.

What counts as “marketing” text? The law covers texts sent to induce the purchase, rental, or receipt of goods or services. Typical promotional or sales messages fall in this bucket. Purely informational texts (e.g. appointment reminders) might not be “solicitations” – but if they contain any marketing or upsell language, assume they’re covered. Graphics and images count too – for instance, an MMS with a product photo and promo code is treated the same as a text.

No autodialer exemption: Unlike the federal TCPA, Texas law doesn’t care if you use an autodialer or not. Even manual text campaigns must comply. This is important for coreILLA users – even if you manually trigger individual texts or replies, you’re still on the hook for all requirements if it’s a marketing message.

Narrow Exemptions

Texas’s telemarketing law does include some exemptions, but they are narrowly defined and the burden is on the business to prove an exemption applies. Most small businesses and retailers will NOT be exempt, except in specific scenarios. Here are the key exemptions relevant to text marketers:

• Existing Customer Relationships: If you are soliciting a former or current customer with whom you’ve done business under the same name for at least 2 years, you may be exempt from the registration requirement. This could cover, for example, a gun shop texting a customer who purchased from them in the past. However, be careful – the law doesn’t clearly define “customer” for this purpose. Generally, it implies someone who actually bought or transacted with you (simply being a subscriber on your list might not qualify unless they’ve made a purchase). If you rely on this exemption, ensure you meet the criteria and maintain evidence of the customer relationship.

• Established Retail Business: Brick-and-mortar retailers that have operated under the same name for 2+ years and do a majority of sales at their physical location can be exempt. This could apply to many firearms retailers who have a long-standing storefront. It suggests the law’s focus is on telemarketing operations, not local store outreach. But again, this exemption only excuses registration requirements; you still must honor no-call lists and basic rules if applicable.

• Certain Entities: Publicly traded companies and their subsidiaries, financial institutions, insurance entities, educational institutions, and 501(c)(3) nonprofits are exempt. (This likely doesn’t cover most of our coreILLA users, but worth noting in case your business falls in one of these categories.)

• Specific Solicitations Not Covered: The law excludes some types of solicitations entirely – for example, marketing the sale of food, or subscription services for newspapers/cable, or catalog sales meeting certain criteria. These are pretty specific and probably not relevant to most of our users (and notably, there is no general exemption for the firearm industry or any other industry – SB 140 is not targeting firearms, it applies broadly).

Remember, if you think you qualify for an exemption, consult legal counsel to be sure. If you are exempt, you might not need to register or follow certain provisions of Chapter 302. However, exemptions don’t give free rein to spam consumers – other Texas chapters (like 304 and 305) and federal laws still prohibit texting people without consent or to no-call-listed numbers. In short, even exempt businesses should adopt the best practices outlined below to avoid upset customers or legal risk.
Key Requirements Under SB 140

For businesses covered by the law (which will be most who text Texas residents), compliance is critical. Texas now imposes several strict requirements on text message marketing. Here are the key rules coreILLA users need to follow:

• State Registration as a Telemarketer: Perhaps the biggest new obligation is that you must register with the Texas Secretary of State as a “telephone solicitor,” unless you’re exempt. This involves submitting Form 3401, paying a $200 registration fee, and posting a $10,000 security bond or surety. You’ll need to provide detailed business information (and possibly samples of your scripts or messages). The registration has to be renewed annually and kept up to date. Important: If you’re not exempt, you need to be registered before sending marketing texts to Texas. Operating without registering could itself violate the law. (Registration is only considered valid once Texas approves and issues a certificate, not merely upon your application submission.)

• Prior Express Written Consent: Texas now explicitly requires prior express written consent from the recipient before sending them marketing text messages. This means you must have a clear, unambiguous agreement (on paper or electronic form) from the person that they agree to receive your promotional texts. The consent cannot be forced (no “you must agree to texts to purchase” clauses) and any opt-in checkbox must not be pre-checked by default. In practice, if you already use coreILLA’s opt-in features (e.g., having customers text a keyword to join or check a box on a web form), you likely have some form of consent. But now is the time to double-check your records – ensure you’ve captured and stored affirmative consent for each Texas contact. If not, you must obtain consent before texting them further. (This requirement aligns with best practices under federal law as well.)

• Clear Opt-Out on Every Message: Every marketing text you send must include an opt-out mechanism, and if a recipient opts out, you must honor it immediately. In practical terms, this means your messages should say something like “Reply STOP to unsubscribe” or include a clear way for the recipient to decline future messages. coreILLA’s platform supports standard opt-out keywords (e.g., if someone replies “STOP,” it automatically flags them as unsubscribed). Make sure this feature is active and tested. It’s wise to include a brief opt-out line in each outreach text for clarity. The moment someone texts “STOP” (or any opt-out request), you must cease sending to that number promptly. Not honoring opt-outs isn’t just illegal – it erodes customer trust, something we at Coreware absolutely want to help you preserve.

• “Quiet Hours” – Time Restrictions: Texas has imposed strict “do-not-disturb” hours for marketing messages. No marketing texts may be sent before 9:00 AM or after 9:00 PM Texas local time, Monday–Saturday. On Sundays, the window is even narrower: no texts before 12:00 noon or after 9:00 PM. These hours are based on the recipient’s local time (which in Texas is Central Time for most, but parts of far west Texas use Mountain Time) – so be careful with area codes from those regions, and when in doubt, assume Central Time. coreILLA’s campaign scheduler can help you comply: schedule your mass texts to send only during allowed hours, and avoid any manual texting to Texas customers outside 9 AM–9 PM (or on Sunday mornings). Respecting quiet hours isn’t just about avoiding penalties; it’s also respectful marketing etiquette, ensuring you don’t disturb customers at off-hours.

• No-Call List Compliance: Texas maintains a state “No-Call” list (actually two: a general no-call list and an “electric” no-call list for certain utilities) that consumers can join to refuse telemarketing. Now that texts count as telemarketing, you must not send marketing texts to any number on the Texas no-call lists. Businesses are required to scrub their contact lists against the Texas no-call databases at least every 60 days. If you haven’t been doing this, you may need to subscribe to the Texas no-call list service to obtain the list of numbers. This requirement can be burdensome for small businesses, but it’s part of the law unless you fall under an exemption. (Notably, if someone is your recent customer, they likely wouldn’t put you on a no-call list – but it’s possible. Exemptions aside, adding a Texas customer to your marketing list without explicit consent is risky now.) Ensure that your marketing lists in coreILLA are filtered to exclude any known Texas no-call list numbers. This may require external processing, since coreILLA won’t automatically know which numbers are on the state’s list.

• Recordkeeping: Chapter 302 has long required telemarketers to keep certain records, and with texts it’s no different. You should maintain records of your compliance – including proof of consent for each contact, logs of messages sent, and records of any opt-out requests. Essentially, you want an audit trail in case you ever need to demonstrate that you followed the rules. coreILLA can help by storing your message history and (if you set it up) notes or tags when consent was obtained. We recommend keeping a backup of consent forms or checkboxes (for example, export your list of opt-in contacts with timestamps and IP addresses of signup, if available, or keep signup forms on file). Good recordkeeping can be a lifesaver if a complaint arises – you’ll be able to show that, for instance, “Customer X gave consent on July 1 via our website, we texted only at 2 PM with an offer, and they opted out by replying STOP which we honored immediately.”

• Other Disclosure Rules: Texas law also has some disclosure requirements borrowed from call regulations. For example, in a call, a telemarketer must disclose their identity and whom they represent, and if asked, provide a physical address or registration number. For texts, be transparent about who you are. It’s wise to ensure your business name or brand is evident in the message content, especially for initial texts (e.g., “ABC Store: Don’t miss our sale…”). While the law doesn’t explicitly say each text must include your business name, unclear or anonymous messages could raise red flags. Also, avoid spoofing any sender information – never send texts from a misleading phone number or using someone else’s identity, as caller ID spoofing is illegal and now explicitly tied into the DTPA penalties.

Penalties for Non-Compliance (Why You Really Don’t Want to Violate SB 140)

Texas has put real teeth into this law. If you ignore these requirements and continue “business as usual” with marketing texts to Texas, you expose yourself to serious penalties:

• Civil Penalties and Fines: The Texas Attorney General can seek civil penalties up to $5,000 per violation of the telemarketing law. Each non-compliant text sent could count as a separate violation. On top of that, the law provides for fines ranging from $500 to $5,000 per violation in enforcement actions. These numbers can add up alarmingly fast if you send a large text blast that isn’t compliant.

• Private Lawsuits (DTPA): Perhaps even more concerning, SB 140 makes every violation a trigger for the Texas Deceptive Trade Practices Act. This means individual consumers (or classes of consumers) can sue your business for sending unlawful texts. Under the DTPA, they can recover compensatory damages, attorneys’ fees, and even emotional distress damages in some cases. The law also explicitly allows treble damages (triple the amount) if the violation was knowing or willful. For example, if a consumer proves you deliberately ignored the law, a $1,000 damage claim could become $3,000.

• “Serial” Lawsuits Allowed: SB 140 closes a loophole that might have once limited multiple lawsuits. Now, a consumer can sue you, settle or win, and then sue again if you violate the law again later. The law states that a person winning one case doesn’t prevent future claims for future violations. In effect, repeat offenders can be dragged into court over and over if they keep texting illegally. This is meant to strongly discourage the “pay a fine and keep spamming” approach – it pushes businesses to achieve continuous compliance or face continuous liability.

• Active Enforcement: Beyond private lawsuits, remember that the Texas Attorney General is very active in enforcement. The AG can investigate and bring actions for injunctive relief and penalties. With SB 140 being new, we anticipate the AG will be on the lookout for early cases to set an example. Texas regulators have a history of strict action in consumer protection areas, so non-compliant text campaigns could attract unwanted attention quickly.

In summary, violating this law can hurt both financially and reputationally. The costs of compliance (like a $200 fee, some paperwork, and adjusting your texting practices) are minimal compared to the potential penalties and legal fees if you get it wrong. It’s simply not worth the risk to cut corners here.

How coreILLA Users Can Protect Themselves and Comply

As a coreILLA user, what steps should you take right now to stay on the right side of SB 140? Here’s a plan to protect your business and your customers:

1. Assess Your Exposure: Review your contact lists and texting practices. Do you have Texas customers or leads in your messaging lists? Identify any phone numbers with Texas area codes or addresses. Also, consider if your business operates in Texas. This will tell you if SB 140 likely applies to you. If you find that you rarely or never text Texas numbers, you might sidestep the issue – but be cautious, as area codes aren’t foolproof (a person with a non-TX area code might live in Texas, and vice versa). If you want to be absolutely safe without taking on compliance obligations, one strategy is to exclude Texas contacts from marketing texts (for businesses outside Texas). coreILLA allows segmentation of contact lists; you could create a segment excluding area codes from 214, 512, 713, etc., or excluding contacts marked with a Texas address. However, excluding Texas entirely means you won’t engage those customers via SMS – a business decision you’ll need to make.

2. Determine if an Exemption Applies: If you do text Texas, check if you might qualify for an exemption (see “Who Is Covered?” above). For example, if you only text your own established customers (2+ years) about reorders or store events, you might be exempt from the registration requirement. Or if you’re a brick-and-mortar retailer meeting the criteria, same idea. Important: Exemption from registration doesn’t necessarily exempt you from consent or opt-out rules under Chapters 304/305. So even if you don’t have to file with the state, you should still practice consent-based marketing. If you believe you’re exempt, it’s wise to get confirmation from legal counsel. The law’s nuances can be tricky, and you don’t want to assume wrongly. Remember, the burden of proof is on you to prove an exemption if challenged.

3. Register with Texas if Required: If you determine you are not exempt, begin the registration process immediately. As of now (early September 2025), the law is in effect, so any unregistered texting to Texas is risky. To register, file Form 3401 with the Texas Secretary of State, pay the $200 fee, and arrange for the $10,000 security bond. The form and instructions are available on the Texas Secretary of State’s website. This process might take some time, so consider pausing your marketing texts to Texas until you have your registration certificate in hand. If you need help understanding the form, consulting an attorney or compliance expert is recommended. (Note: Coreware cannot register on your behalf – this is a legal registration by your business, not something the platform or service provider does.)

4. Review and Refresh Consent Records: Make sure every Texas recipient on your list has given valid consent for marketing texts. If you’re unsure, it’s better to err on the side of caution – consider running a re-opt-in campaign. For instance, you might send a one-time message (to those you believe had consent) saying, “Reply YES to confirm you want to continue receiving texts about promotions.” Only those who reconfirm would remain on your Texas list. coreILLA can help manage responses and segment those who replied YES vs. those who didn’t. Also, update your customer intake processes: if you haven’t been collecting “written” consent (e.g. via signed form or checkbox with TCPA-style language), implement that now for all new opt-ins. Keep those consent records organized – they are your first line of defense in case of a complaint.

5. Enable Opt-Out and Honor It: Ensure that opt-out instructions are present in your messages and that the functionality works. This is usually standard: when a user replies “STOP,” coreILLA will automatically mark that contact as unsubscribed. Do not send any further texts to anyone who opted out – no exceptions. We recommend periodically testing this from one of your own numbers: send yourself a marketing text, reply “STOP,” and verify you’re removed from that campaign. It’s also good practice to include a line like “Txt STOP to opt out” at the end of your marketing texts so customers know they have a choice. This transparency can prevent frustration and shows that you respect recipients’ wishes.

6. Mind the Clock (Quiet Hours): Adjust your texting schedule to comply with the 9 AM – 9 PM (Mon-Sat) and noon – 9 PM (Sun) rule in Texas. coreILLA’s scheduling tools can ensure a campaign launches only at permissible times. If you normally send out “Good morning” promotional texts at 8 AM, you’ll need to push those to 9 AM for Texas numbers. Likewise, late-night flash sale texts after 9 PM are off-limits in Texas. If your marketing team or automated workflows might accidentally send during off-hours, implement filters for Texas contacts – e.g., don’t include Texas recipients in a blast that goes out at 8:30 AM. It might be simplest to create a separate campaign or schedule for Texas recipients that adheres to the time window.

7. Scrub Against the Texas No-Call List: This step is a bit technical, but important if you do any kind of cold texting (texting prospects who haven’t explicitly opted in but whose numbers you obtained otherwise – though ideally you shouldn’t be doing that at all post-SB 140). If you have a list of contacts, you should remove numbers that are on Texas’s no-call list. To do this, you’ll need to obtain the up-to-date no-call list from the Texas authorities (typically by subscribing as a telemarketer). The law expects scrubbing every 30–60 days. Many small businesses may not have been aware of this requirement until now. If you exclusively text people who have opted in, you likely won’t be texting someone who put themselves on a do-not-call list. But to be safe, you can ask your customers (especially older ones) if they’ve ever registered their number on a state DNC list. The bottom line: avoid texting anyone who has indicated through any official channel that they do not wish to be solicited. Respecting this will also align with general good customer relations.

8. Train Your Team: If you have staff who assist with marketing or use coreILLA, educate them about these new rules. Everyone should understand that, for example, they cannot manually text a Texas client an after-hours promotion as a one-off favor. Make sure your team knows the importance of checking for consent, including opt-out info, and timing messages properly. A short training or checklist can go a long way to prevent mistakes. Coreware can assist by summarizing these requirements (feel free to share this article with your marketing team or managers).

9. Consult Legal Counsel if in Doubt: As software providers, we at Coreware can inform you of these changes and provide tools to facilitate compliance – but we cannot provide legal advice. If you’re unsure about how the law applies to you (for example, whether your particular messages require registration, or if your business model fits an exemption), it’s wise to consult with a qualified attorney familiar with telemarketing laws. Particularly for our firearms retail customers: while SB 140 isn’t targeting firearms specifically, compliance questions can intersect with other regulations (e.g., if you send texts about firearm sales, ensure you’re also following age restriction messaging, etc.). An attorney can provide personalized guidance.

10. Leverage coreILLA’s Compliance Features: coreILLA has built-in features designed to support compliance:
    ◦ Opt-Out Management: As mentioned, use the automatic unsubscribe feature. You can also configure automatic responses to keywords like HELP or STOP as per CTIA guidelines.
    ◦ Scheduling and Throttling: Use scheduling to respect time zones. If you have contacts across the country in your list, segment by time zone or use smart sending features if available.
    ◦ Contact Segmentation: Maintain tags or segments for customers by state. This makes it easier to include/exclude Texas recipients as needed.
    ◦ Consent Capture: Use coreILLA’s web forms or keywords to ensure you’re capturing express consent with proper wording. If you’re not sure if your opt-in language meets “prior express written consent” standards, update it (e.g., “By signing up, you agree to receive recurring promotional texts from [Your Business]…”).
    ◦ Recordkeeping: Export or save reports of messages sent, and keep backups of your subscriber list and consent logs. coreILLA can provide logs of all text interactions; make sure to archive those periodically.

11. While coreILLA provides the tools, it’s ultimately your responsibility as the sender to use them correctly. Coreware’s role is to empower you to comply, but you are considered the “telemarketer” or “seller” under the law. We’re here to help with any platform-specific questions (for example, how to filter contacts from Texas or set up an opt-in form), but we can’t do the compliance steps for you.

Conclusion: Coreware’s Commitment to Your Compliance

This new Texas law (SB 140) is a significant change that all businesses engaging in text message marketing need to heed. It transforms text marketing from a relatively simple outreach method into a more regulated activity – especially for those reaching customers in Texas. We understand that laws like these can feel daunting. However, with some diligence and adjustments, you can continue to text your customers effectively while staying fully compliant.

At Coreware, we are committed to keeping our customers informed about important developments like this. coreILLA is a powerful tool for engagement, and part of that power is making sure it’s used responsibly and legally. We care about your business’s success and reputation – which go hand-in-hand with following laws that protect consumers’ privacy and preferences. By taking the steps outlined above (registering if needed, obtaining consent, honoring opt-outs, timing messages properly, etc.), you not only avoid legal trouble, but you also build trust with your customers. No one wants to receive unwanted or intrusive texts, and complying with these rules helps ensure that your audience views your texts as welcome and respectful.

Next steps: If you market to Texas residents, the time to act is now. SB 140 is already in effect as of September 1, 2025, so every day of non-compliance is a risk. Review your coreILLA campaigns and contact lists as soon as possible. Make any necessary changes to bring your texting practices into line with the new requirements. If you need assistance with using coreILLA’s features to implement these changes, please reach out to our support team – we’re here to help you navigate these changes.

Finally, if you have specific legal questions or edge cases (for example, how the law might apply to a particular type of text campaign you run), we strongly encourage you to consult your legal counsel. Compliance often involves nuances that legal professionals can help interpret for your situation.

Coreware is here to support you. We believe proactive compliance is part of great customer service. By addressing SB 140 head-on and adjusting your practices, you’re not just avoiding penalties – you’re showing your customers (and potential customers) that you respect their rights and their time. That goes a long way in building loyalty and a positive brand image.

We’re proud to have customers who want to do things the right way, and we’ll continue to provide you with the tools and information to make that possible.

Stay safe, stay compliant, and as always, happy marketing!