
Texas Overhauls State Telemarketing Law with New Compliance and Litigation Risks


A sweeping update to Texas’s telemarketing rules is going into effect on September 1, 2025, and it means additional compliance obligations and litigation risks for businesses that place outbound calls or messages to consumers in the state. Senate Bill 140 (SB140), signed into law by Governor Greg Abbott in June, significantly expands the Texas Business & Commerce Code (TBCC) and introduces a new private right of action under the Texas Deceptive Trade Practices Act (DTPA).
Here’s what you need to know about this upgraded state mini-TCPA:
What changed
1. Consumers can sue directly
Texans will now be able to file lawsuits directly for violations of telemarketing laws—no need to go through a state agency first. The law opens the door to private litigation under the DTPA for violations including:
Calling numbers on the Texas Do Not Call list
Use of Automated Dial Announcing Devices (ADADs) in prohibited ways
Failure to register as a telemarketer
2. Expanded definition of a “call”
A “telephone solicitation” is no longer just about phone calls. It now includes:
Text messages
Image or graphic messages
Any electronic communication intended to promote the purchase or rental of goods or services
3. Broader interpretation of automated systems
The Texas definition of an ADAD includes equipment that stores and calls numbers using random or sequential number generators and delivers prerecorded or synthetic voice messages—even if no live operator is used.
This broader definition may capture more technologies than the federal TCPA.
4. Penalties add up fast
Each violation could cost you $500 to $10,000, and the law does not cap recovery for repeat violations. That means serial litigants could bring multiple claims—and the penalties can multiply quickly.
Why this matters
Higher litigation risk: Businesses face direct lawsuits from individuals under the DTPA.
More channels covered: Texting and multimedia messages are now regulated the same as voice calls.
Looser definitions = wider liability: Systems that weren’t considered autodialers under federal law may still violate Texas law.
Noncompliance is expensive: Penalties are per violation, and treble damages are available for willful conduct.
No registration, big problem: Failure to register as a telemarketer in Texas carries a fine of $5,000 per instance.
What you should do now
✅ Verify your telemarketer registration – Make sure your business is properly registered with the Texas Public Utility Commission.
✅ Review all communication channels – Calls, texts, images, and other electronic outreach must all be compliant.
✅ Evaluate your dialing systems – Technology using number generators or prerecorded messages may fall under the new ADAD definition.
✅ Update compliance processes – Ensure you're observing Texas’s call time restrictions (9 AM–9 PM Mon–Sat; 12 PM–9 PM Sun), honoring opt-outs, and following all DNC requirements.
✅ Train your team – Educate internal teams and partners on the new risks and required safeguards.
Deeper dive: Understanding SB140’s enforcement mechanisms
Private right of action via the Texas DTPA
Before SB140, enforcement was largely handled through agencies. Now, private plaintiffs can directly sue under Section 304.052 of the TBCC by invoking the Texas Deceptive Trade Practices Act, which allows for:
Statutory damages: $500 to $10,000 per violation
Treble damages: For knowing or intentional misconduct
Attorney’s fees and mental anguish: Additional recovery paths under the DTPA
This aligns Texas with a growing number of states enabling direct consumer litigation over telemarketing violations.
Expanded “Call” definition closes loopholes
Section 304.001 now explicitly includes “text messages, images, graphics, or other electronic transmissions” in its definition of a “telephone call.” This brings modern digital outreach fully within regulatory scope—closing off what many saw as a gray area.
Redefined ADAD may sweep in more tools
Under Section 301.001, an ADAD is any device that:
Stores and dials numbers using a random or sequential number generator, and
Delivers a prerecorded or synthetic voice message, without live interaction
This differs from the federal TCPA’s more limited ATDS definition. Notably, “dialing” isn’t even required—merely having the ability to store numbers and send messages may be enough.
No shield from repeat claims
The law clarifies that recovering damages for one violation doesn’t block consumers from suing again for future violations. This opens the door for serial litigation, especially from individuals targeting companies with systemic issues.
Telemarketer registration is mandatory
Section 302.101 requires that sellers obtain a valid registration certificate before placing calls. Failure to do so risks $5,000 per violation, and courts may treat this as an automatic infraction under the DTPA.
Final word
SB140 places Texas at the forefront of aggressive state-level telemarketing regulation. For companies relying on outbound calling or messaging to drive revenue, this is more than just a compliance update—it’s a fundamental shift in legal exposure and operational expectations. With its expansive definitions, aggressive penalties, and new litigation pathway, the cost of getting it wrong just became much steeper.
As consumers gain more power to sue, and as more communication methods fall under scrutiny, smart businesses will take this moment to reinforce internal safeguards, modernize systems, and rethink risk tolerance in their outreach strategies.
Learn about Convoso’s TCPA compliance tools. Convoso's flexible architecture and built-in compliance features help growth-minded call centers future-proof business operations.
DISCLAIMER: The information on this page, and related links, is provided for general education purposes only and is not legal advice. Convoso does not guarantee the accuracy or appropriateness of this information to your situation. You are solely responsible for using Convoso’s services in a legally compliant way and should consult your legal counsel for compliance advice. Any quotes are solely the views of the quoted person and do not necessarily reflect the views or opinions of Convoso.
Schedule a demo
Supercharge your sales with our AI-powered contact center platform.