New Texas SMS Law Could Cost You EVERYTHING

Starting September 1, 2025, ecommerce brands using SMS marketing may face new compliance hurdles in Texas, ones that could cost you thousands of dollars per text if overlooked.

At ASPEKT, we’re not here to offer legal advice, but we are here to help ecommerce and DTC brands stay informed and ahead of regulation changes that can affect revenue operations.

Here’s what you need to know.

 

The Update: Texas Expands “Telemarketing” to Include SMS

Texas recently passed an amendment to its Business & Commerce Code (§302) that significantly changes how the state defines and regulates “telephone solicitation.”

The key change?

Marketing text messages are now treated the same as telemarketing phone calls.

That means if your brand sends SMS messages to Texas residents, even through a platform like Klaviyo, Postscript, or Attentive, you may now fall under the same rules as traditional telemarketers.

Starting September 1, any business that sends promotional SMS to Texas customers may need to:

  • Register as a telephone solicitor with the Texas Secretary of State

  • Pay a $200 registration fee

  • Post a $10,000 security bond or letter of credit

Failing to register could lead to penalties of $5,000 per message, along with potential lawsuits and enforcement from state regulators.

 

Who This Law May Affect

The update is broad, but there are exemptions. According to the state, you might not need to register if your business is:

  • A publicly traded company or its direct subsidiary

  • A nonprofit organization (501(c)(3))

  • A bank, credit union, or financial institution

  • A brick-and-mortar retail business in Texas that has operated under the same name for 2+ years and primarily sells in-store

  • A company only contacting existing customers (with the same 2+ year rule)

However, if you’re an ecommerce or DTC brand with a national customer base, use SMS automations, and have Texas contacts in your list, there’s a strong chance this law could apply to you.

Important: The law applies even if you’re not located in Texas, as long as your SMS campaigns reach Texas residents.

 

Why This Matters: Penalties Are Serious

Here’s what’s on the line if your brand is caught out of compliance after the September 1 deadline:

  • $5,000 fine per unregistered text message

  • $500 to $10,000 per violation in private lawsuits

  • Triple damages for intentional violations

  • No cap on the number of violations or total liability

  • Regulatory action from the Texas Attorney General under the Deceptive Trade Practices Act (DTPA)

That “quick flash sale” text to a Texas number? It could cost you far more than it earns if your brand hasn’t registered.

 

What Ecommerce Brands Should Do Next

We’re not attorneys, and this isn’t legal advice. But based on what’s been outlined in the law and in official notices (like the one from Klaviyo), here are the immediate steps ecommerce brands should consider:

1. Read the Official Guidance

Start by reading Klaviyo’s full breakdown here: Texas Business & Commerce Code Update

This will help you understand the scope of the law and how it might relate to your SMS activity.

2. Consult Legal Counsel

Every business is different. If you believe your SMS program touches Texas residents, we strongly recommend speaking to your legal team to determine:

  • Whether your brand qualifies for an exemption

  • If registration is required

  • What updates (if any) are needed to your current SMS practices

3. Let Your Retention Team Know

If your legal team determines the law applies to you, let us, or whoever manages your retention efforts, know if:

  • You need to adjust send times (Texas law prohibits messages before 9 AM or after 9 PM CST)

  • You plan to pause sending to Texas recipients

  • You’d like to update opt-out language or audience segments

We’ll work with you to implement those changes inside your SMS platform.

Reminder: We’re not providing legal guidance, but we can help implement any segmentation or scheduling changes you request.

 

What’s Involved in the Texas Registration?

For brands that do need to register, the process involves submitting Form 3401 and providing:

  • Your business information and ownership structure

  • SMS numbers and platforms used

  • Marketing scripts and sample messages

  • A $10,000 security bond or equivalent

The form must be notarized and updated quarterly. While this sounds heavy, it’s a one-time annual requirement that helps avoid costly penalties.

If you’d like to preview the form, you can review the official PDF here: Texas Telephone Solicitation Registration – Form 3401 (PDF)

 

Final Thoughts

Retention marketing is one of the most profitable channels ecommerce brands have, but only when it’s built on trust, transparency, and compliance.

This new Texas SMS law doesn’t mean you need to stop texting your customers, it just means you may need to tighten up how and where you send.

The good news? You have time. The law takes effect on September 1, 2025.

If you’re unsure whether this affects you, start by reviewing the official links, consult with your legal counsel, and update your retention workflows accordingly.

We’ll be keeping an eye on updates and doing our part to ensure our partners stay informed.

Need help adjusting your sending segments or SMS strategy?
We’re happy to help implement any changes your legal team recommends, feel free to reach out to our email marketing specialist team here.

Disclaimer: This article is for informational purposes only and does not constitute legal advice,

Related Resources

Advance Your Brand Today

Schedule Your Free Retention Initiative Call

let's chat