Get Ready: Texas SB 140 Takes Effect in One Week
While Texas already prohibits the use of an “automated dial announcing device” (ADAD) to make a sales call without consent, starting September 1, SB 140 expands its telemarketing rules, creating a new private right of action under the Deceptive Trade Practices Act (DTPA), broadening definitions, and increasing penalties for violations.
Companies that call, text, or message Texas residents (or place calls from Texas) must act now to prepare. Violations can cost between $500 and $5,000 depending on the section, making this statute a prime target for class action lawsuits.
Key Changes Under SB 140
Broader Definitions: “Telephone call” and “telephone solicitation” now include texts, image messages, and other transmissions aimed at selling.
Private Right of Action: Violations such as calling outside curfew hours, failing to register as a telemarketer, or ignoring opt-outs are now also violations of the DTPA.
Liberal Interpretation: The law must be liberally construed to protect the public, and repeat recoveries are not limited.
Attorneys’ Fees: Plaintiffs can recover attorneys’ fees and other relief under the DTPA.
Compliance Checklist Before September 1
Document Consent: Keep clear records of written consent for every call or text.
Audit Technology: Avoid using an ADAD (reach out for more info on this) or prerecorded messages. Use live agents where possible.
Update Policies: Cover texts, MMS, and image-based marketing in compliance manuals.
Confirm Registration: Verify your Texas telemarketing registration or exemption.
Respect Curfews: Only call 9 AM–9 PM (Mon–Sat) and Noon–9 PM (Sun).
Track Opt-Outs: Process opt-out requests immediately and permanently.
Train Staff: Ensure employees understand the new rules.
Prepare for Litigation: Anticipate lawsuits and track serial plaintiffs.
In short, SB 140 expands liability and increases penalties for telemarketing in Texas. Companies that already obtain prior express written consent for marketing calls or texts may not need to overhaul their practices, but the new law makes registration, curfews, and opt-out management critical.