Telemarketing Registration: What Texas SB 140 Means and Why Other States Still Matter
I’ve been getting a lot of questions this week about Texas Senate Bill 140, which just took effect and now lets consumers file lawsuits directly against businesses that violate the law.
If you’re making telemarketing calls from or into Texas, state registration is required unless an exemption applies. Violations can cost $5,000 each. While Texas is making headlines, the reality is that many other states also require businesses to register before making telemarketing calls. There is no federal registration requirement, but state rules fill that gap and ignoring them can mean fines, investigations, or worse.
Exemptions to Keep in Mind
Not every caller has to register. Some states exempt calls made with prior consent, or calls placed on behalf of certain entities like nonprofits, insurers, or financial institutions. Others exempt companies that do not make unsolicited calls. Still, some states have more requirements, such as posting a surety bond or paying registration fees.
It is important to strike the right balance. Over registering can be just as problematic as under registering because it adds cost and complexity you may not need. The smarter approach is to have an attorney analyze your call practices (we do this a lot), see which state laws apply, and identify any applicable exemptions.
Do Not Mix Up Registration and Do Not Call Lists
One of the biggest misconceptions I see is treating telemarketing registration and “do not call” list subscriptions as the same thing. They are not. Registration is about whether your business is legally authorized to place telemarketing calls into a state. “Do not call” lists are about who you can and cannot call once you are authorized. Some states blur the language, but compliance requires paying attention to both.
Why Registration Matters for Your Business
Think of telemarketing registration like a business license, a basic requirement that protects your operations. With Texas SB 140 now giving consumers the ability to sue directly, this is a good time to review your compliance. Make sure you are registered where necessary, take advantage of exemptions where they apply, and keep “do not call” list compliance on a parallel track. A little diligence now can prevent costly fines and lawsuits later.