Overview

Texas has passed Senate Bill 140 (SB 140), amending the Texas Business and Commerce Code to expand regulation of marketing communications. For the first time, marketing SMS and MMS text messages fall under state registration requirements.

Businesses, which are subject to the law and which do not fall within an exception, must now take the following action before sending any text / SMS messages to Texas residents:

• Register with the Texas Secretary of State
• Pay a $200 annual registration fee
• Post a $10,000 security deposit (unless exempt)

This law aligns Texas with other states that regulate telemarketing and aims to protect consumers by requiring registration and expanding the law to include SMS/MMS marketing.

Requirements for Affected Businesses

Registration

• File with the Texas Secretary of State before sending marketing texts
• Renew annually

Fees and Deposits

• $200 annual filing fee
• $10,000 security deposit (exceptions may apply)

Scope

• Applies to all marketing SMS/MMS messages sent to Texas residents for companies covered by the legislation that do not fall into an exception.
• Includes platforms such as Birdeye, Klaviyo, Twilio, and others.

Penalties for Non-Compliance

• Businesses that fail to comply risk fines, legal penalties, and potential suspension of SMS marketing privileges in Texas.
• Enforcement will fall under the Texas Attorney General.

What This Means for Birdeye Clients*

• If you send marketing text messages to Texas residents, SB 140 may apply.
• If SB 140 applies, Birdeye clients will need to register directly with the Texas Secretary of State.
• Currently, Birdeye cannot register on behalf of clients.
• Some third-party providers (like Twilio or Klaviyo) may issue their own guidance, but businesses are ultimately responsible for compliance.

*This is not a formal legal opinion but only Birdeye’s recommendation. Clients should seek independent legal counsel if they have any questions or concerns, as they are responsible for complying with all legal requirements.   

Action Steps for Clients Sending Texts to Texas Residents**

1. Confirm if you send SMS/MMS marketing messages to Texas residents.
2. Prepare for registration with the Texas Secretary of State before September 1, 2025.
3. Budget for the $200 annual fee and $10,000 security deposit (or determine if you qualify for exemption).
4. Opt out and record keeping - make sure you have received the recipient’s consent to receive texts, ensure your the recipients have clear and reasonable ways to opt out of texts (Birdeye does this if the texts comes through the Birdeye platform), that you keep records of consents just as you are required to do under other privacy laws (Birdeye does this as well for recipients which receive texts through its platform), and check that you comply with other requirements.
5. Consult legal counsel if you’re unsure about your obligations.
6. Stay tuned for Birdeye updates — we will share approved guidance as it becomes available.

**This is not a formal legal opinion or advice but only Birdeye’s recommendation.  Clients should seek independent legal counsel if they have any questions or concerns, as they are responsible for complying with all legal requirements.