What Texas’s New Mini-TCPA Update Means for Small Business SMS Marketing (And How to Stay Compliant in 2025)
TL;DR (Quick Summary)
Texas expanded its Mini-TCPA to include text messages in 2025. That created confusion and potential costs — including a $10K surety bond and registration requirements. BUT after a recent legal settlement, Texas clarified that properly consented SMS programs are exempt from registration. You still must follow: quiet hours, DNC suppression, truthful messaging, and documented opt-ins.
If you run permission-based texting, you can continue marketing — safely — with the right compliance processes.
In September 2025, Texas officially reshaped the rules of SMS marketing — and it’s already making waves across every industry that uses text messaging for customer communication. With the passage of SB 140, the state expanded its Mini-TCPA (Telephone Consumer Protection Act) to explicitly cover text messages, unlocking new compliance hurdles — and potential litigation risk — for businesses that rely on SMS campaigns.
When Did These Changes Take Effect?
SB 140 took effect on September 1, 2025. The consent-based exemption clarification followed shortly after, via a legal settlement in November 2025. Together, these two changes define how businesses must operate heading into 2026.
But here’s the good news: after a recent legal settlement, there’s now clarification that properly consented text messaging may be exempt from registration requirements. In other words, compliant businesses may be able to text freely — if they do it right.
This article breaks down what the law actually says, what risks still exist, and how small businesses can stay compliant without losing marketing momentum. Let’s dig in.
What Changed with SB 140?
Texas Senate Bill 140 amends Chapter 302 of the Texas Business & Commerce Code and formally defines “telephone solicitation” to include SMS and MMS messages — including texts with images or graphics.
That means businesses sending marketing texts to Texas residents may now be considered telephone solicitors, and in many situations, are required to register with the Texas Secretary of State.
Registration & Bond Requirements
If registration is required, here’s what it typically entails:
| Requirement | Details |
|---|---|
| State Registration | Filed with Texas Secretary of State |
| Security Deposit/Bond | $10,000 minimum (Katten LLP 2025) |
| Filing Fee | Required, per application |
| Annual Reporting | Continued oversight |
For small businesses, that $10,000 bond alone could be a deal-breaker.
But Here’s the Major Clarification: Consent-Based SMS Is Likely Exempt
Following legal pressure from industry players including EIA, Flux Footwear, and Postscript, Texas agreed via settlement that:
SMS messages sent with prior consumer consent are not subject to Chapter 302’s registration requirements.
The Texas Secretary of State agreed to:
- Publish guidance on this exemption within 10 business days of settlement.
- Request an Attorney General opinion reinforcing that opt-in text programs are exempt from registration.
Bottom line: If your business collects valid, documented consent, you likely will not need to register or provide a financial bond.
What’s Still Unclear (as of late 2025)
Even with the settlement, a few areas still need clarification from Texas regulators:
- When the Texas Secretary of State will publish the promised written guidance
- Whether the Attorney General’s upcoming opinion will introduce additional nuance
- How third-party lead providers will be treated (pass-through consent questions)
- Whether additional enforcement rules will be issued for text quiet hours
- How “existing business relationship” will be interpreted for SMS vs. calls
These aren’t roadblocks — just areas to watch as guidance evolves.
Other Compliance Rules Still Apply
Even consent-based marketers must comply with all other Mini-TCPA provisions, including:
- Quiet hours – restrictions on when texts can be sent (likely similar to call hours, e.g., 9 pm–8 am local time). (Telnyx support notes)
- Texas Do-Not-Call registry — DNC suppression is still required for any contact who has not opted in. However, explicit opt-in overrides DNC for your specific SMS program. Betwext only supports permission-based messaging.
- Truthful and non-deceptive messaging – violations can be prosecuted under the Texas Deceptive Trade Practices Act (DTPA), greatly increasing litigation risk. (Greenberg Traurig 2025)
Why This Matters More Than Just Registration
Even if exempt, businesses still face risk:
- Private lawsuits allowed via DTPA — meaning individual consumers can sue for economic damages and possibly mental anguish. (GT Law 2025)
- Claims can be stacked — previous recoveries don’t limit future actions (Mondaq 2025).
- Quiet hours and suppression rules now apply to texts, not just calls.
This means your business must move forward with an automation + compliance mindset.
Suggested Chart: SMS Compliance Impact
| Compliance Element | Required For Consent-Based SMS? |
|---|---|
| State registration | No (per settlement) |
| $10K surety bond | No (if compliant) |
| Consent documentation | Yes |
| Quiet hour scheduling | Yes |
| DNC suppression | Yes (applies to all SMS programs, even with consent — unless the subscriber opted in directly) |
| Litigation risk | Moderate (still active) |
What Counts as Valid Consent?
Based on Texas guidance and industry best practice:
✔ Explicit opt-in
✔ Clear disclosure of message type & frequency
✔ Easy opt-out (e.g., “Reply STOP”)
✔ Logged and timestamped consent event
✔ Double opt-in ideal (but not always required)
❌ No pre-checked boxes
❌ No ambiguity (e.g., “By visiting this site you agree…”)
❌ No purchase-required automatic opt-ins
Examples of Clear, Compliant Opt-In Messages
Opt-In Message (Double Opt-In Request):
Thanks for signing up for Morning Download (MD). Please reply GO to verify your access to our SMS community.
https://www.morningdownload.com
Message frequency varies. Message and data rates may apply. Reply HELP for help and STOP to cancel.
Confirmation Message (After Opt-In):
MD: Hello! You have successfully opted in to receive SMS messages from Morning Download. Consent is not a condition of any purchase. Message frequency varies. Message and data rates may apply. Reply HELP for help and STOP to unsubscribe.
https://www.morningdownload.com
Risky (Non-Compliant) Examples:
- Pre-checked consent boxes
- “By using this website, you agree to receive messages…”
- Adding customers from purchases or invoices into a marketing SMS list automatically
- Opt-ins collected for “updates” then used for promotions
How Betwext Helps You Stay Compliant Automatically
Compliance Isn’t Just Protection — It Increases ROI
Here’s the twist: tightening compliance doesn’t shrink your SMS list — it improves it.
Permission-based lists deliver:
- Higher engagement
- Lower opt-out rates
- Better deliverability
- Higher lifetime value
When you use real opt-ins and transparent flows, the people on your list actually want your messages — which means more clicks and more revenue.
Betwext is built for small business — and already supports best-practice compliance workflows.
Betwext Automation Features That Help:
- Stored opt-in history and customer profile tracking
- Time-based scheduling to avoid quiet hours
- Auto “STOP” management
- Audience segmentation (for suppression lists)
- Exportable consent logs (for legal verification)
- Double opt-in capability
Best Practice SMS Automation Strategy Under TX Mini-TCPA
- Verify your opt-in flows. Confirm every subscriber explicitly opted in.
- Enable quiet hour protection. Anything between ~9 pm and 8 am local should be automatically blocked.
- Segment Texas recipients. Apply extra filters where necessary (e.g., no-call rules).
- Keep detailed consent logs. Betwext’s automation makes this easy — just export and save.
- Never cold text new prospects. It’s not just risky — it’s legally dangerous.
Texas SMS Compliance Checklist (2025 Edition)
Use this quick reference to confirm your SMS program stays compliant:
Opt-In & Consent
- Documented, explicit opt-in
- Clear disclosures (frequency, type, STOP instructions)
- No pre-checked boxes
- Timestamped logs stored safely
Quiet Hours
- No texts between approximately 9 p.m. and 8 a.m. local time
- Automations should respect each recipient’s timezone. For help configuring timezone-based sending in GHL, HubSpot, or other CRMs, contact support@betwext.com.
DNC Rules
- Suppress Texas Do-Not-Call numbers. DNC suppression is required for anyone who has not opted in. However, explicit opt-in overrides DNC for your specific SMS program.
- Betwext only supports permission-based messaging.
- Regular list scrubbing is recommended to maintain accuracy and compliance.
- Never text purchased lists or cold leads.
Messaging Practices
- Honest, non-deceptive content
- Brand identification required
- STOP / HELP functionality must work
Recordkeeping
- Maintain consent logs
- Track opt-outs
- Keep audit trails
What If You Don’t Update Your SMS Strategy?
| Risk | Potential Outcome |
|---|---|
| No registration (no consent) | $10K bond + enforcement |
| Message sent during quiet hours | Fine or DTPA action |
| No opt-out handling | Private lawsuit or civil penalty |
| Inadequate documentation | No legal defense if complaint filed |
Why This Is Actually a Competitive Advantage
Here’s the perspective shift: Businesses with strong opt-in systems now avoid registration headaches — while non-compliant competitors pay the price.
In 2025, good compliance = operational efficiency + customer trust.
SMS remains one of the most powerful channels:
- 98% open rate (Amra & Elma, Infobip)
- 90% of messages read in 3 minutes (Infobip)
- 21–35% CTR depending on industry (SimpleTexting, Betwext)
- Conversions range from 21–40% (Infobip, Omnisend, Betwext)
Combine that with safe automation, and small businesses win.
Final Takeaway for Business Owners
Texas has raised the bar for SMS marketing governance — but for businesses running permission-based campaigns, this is more of a compliance optimization moment than a threat.
If you’re using valid opt-in processes and an SMS platform designed for real-world compliance (like Betwext), you can continue scaling your campaigns — safely and efficiently.
Sources
- Kelley Drye & Warren LLP — “An Update on Texas Mini-TCPA: Clarification on Consent-Based Text Marketing”
https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/an-update-on-texas-mini-tcpa-clarification-on-consent-based-text-marketing - Katten Muchin Rosenman LLP — “Texas Mini-TCPA Law FAQs for Marketing Texts”
https://katten.com/files/2147889_texas_mini.pdf - Greenberg Traurig LLP — “Amendments to Texas Mini-TCPA May Heighten Telemarketing Compliance Risks”
https://www.gtlaw.com/en/insights/2025/9/amendments-to-texas-mini-tcpa-may-heighten-telemarketing-compliance-risks
Just so you know — Betwext isn’t a law firm, and this article isn’t legal advice. We’re here to help you understand the landscape, not make legal decisions for you. Because SMS rules can change and every business works differently, please check with your own attorney or compliance specialist before relying on anything here. We want you to feel confident and protected.
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