Compliance may be fact- and context-specific. The information contained in this article should not be relied upon as legal advice or to determine how these regulations apply to your use of SMS and our service. You may use this article for your internal reference purposes only. This information is provided “as is” and may be updated or changed without notice.
Texas's recent updates to its business and commerce code, effective September 1, 2025, affect businesses that send promotional and marketing text messages. We have compiled a summary to help you understand the changes and how they may impact your business.
What are the updates?
Texas updated its Business and Commerce Code to include text messaging under “telephone solicitation.” Before the update, this only applied to voice calls. Under the law, businesses that send telephone solicitation may need to register with the state, pay an annual fee, post a security bond, and comply with opt-in and opt-out requirements.
Who is affected?
Businesses that are located in Texas and send marketing text or businesses that send marketing texts to Texas residents might need to register their business with the Texas Secretary of State.
Businesses can review the law to understand if it applies to their company. They can access those resources below:
- Text for the new law
- Text for the law’s amendments, which include a new expanded definition of “telephone solicitation” to include text messages
Some businesses are exempt from this registration requirement, including certain publicly traded companies, educational institutions, 501(c)(3) nonprofits, businesses marketing the sale of food, certain brick-and-mortar retailers, and certain financial companies. You will have to review the law’s language to guage if these exemtptions apply to your company.
What’s the timeline?
These changes go into effect on September 1, 2025.
How do I register my business?
To register your business with the Texas Secretary of State, review the guidelines in the law. Registering includes filling out this form and following the instructions to submit it. The application fee for the registration is $200 and you will need to renew it after one year.
What costs are associated with the law?
In addition to the $200 annual registration fee, the law requires businesses to make a $10,000 security deposit. The deposit can be made in the form of a surety bond, an irrevocable letter of credit, or certain certificates of deposit.
What steps should my business take?
We suggest reviewing the laws and understanding if your businesses might need to register in Texas. If you think these rules might apply to you, we suggest consulting your company’s legal consul to determine what steps you need to take, as compliance is context-specific. You can also contact the Texas Secretary of State with questions and to learn more here.
Compliance may be fact- and context-specific. The information contained in this article should not be relied upon as legal advice or to determine how these regulations apply to your use of SMS and our service. You may use this article for your internal reference purposes only. This information is provided “as is” and may be updated or changed without notice.