New Texas Telemarketing Law Expands Liability with Enhanced Private Right of Action and Damages
By: Chloé Nelson
On June 20, 2025, Governor Greg Abbott signed Senate Bill 140 (SB 140) into law, significantly expanding the potential liability that businesses engaging consumers via phone, text, or similar channels may face. SB 140, which takes effect on September 1, 2025, broadens the scope of communications that are considered telemarketing and introduces to its existing telemarketing law the powerful enforcement mechanisms provided by Texas’s Deceptive Trade Practices Act (DTPA). In short, the cost of noncompliance with Texas telemarketing law is now substantially higher.
A Broader Net: “Telephone Solicitation” Now Captures Text, MMS, and More
A significant change introduced by SB 140 is its broadened scope of what qualifies as a “telephone solicitation.” The new definition covers not just voice calls, but also texts, images, and other digital transmissions, and it also captures inbound calls from consumers that are made in response to a solicitation, regardless of how that solicitation was delivered. This means that any message promoting a product or service—whether sent by call, text, or image, and even where the consumer initiates a call—is now classified as telemarketing and subject to the same registration and disclosure requirements as traditional outbound phone calls.
An Enhanced Private Right of Action—With DTPA Teeth
In addition to expanding the definitions of the law, SB 140 adds DTPA enforcement powers to Texas’s telemarketing rules. By recognizing telemarketing violations as “false, misleading, or deceptive acts” under the DTPA, SB 140 provides plaintiffs an enhanced private right of action and potential for greater monetary recovery and other relief.
For certain telemarketing violations (such as calling numbers on the Texas No-Call list, calling outside of time-of-day restrictions, and failing to follow caller ID and disclosure requirements), the new statute makes it much easier for consumers to bring a private right of action. Previously, consumers would need to first notify the telemarketer of a violation and file a complaint with a state agency. Only if the agency did not take action after 120 days could a consumer sue the business directly. SB 140 removes these hurdles by allowing consumers to sue businesses directly as they would under the DTPA.
Additionally, SB 140 amplifies the penalties available to plaintiffs by authorizing recovery under the Texas DTPA—including economic damages, treble damages, attorneys’ fees, and injunctive relief—on top of the statutory damages already available for telemarketing violations.
Repeat Claims and Lawsuit Risk
Lastly, SB 140 contains a broad directive that a claimant’s prior recovery “may not limit recovery in a future legal proceeding in any manner.” This provision allows plaintiffs to bring multiple demands for damages arising from similar telemarketing violations, particularly when issues aren't addressed promptly. As we have seen with other state privacy laws containing a private right of action and high potential damages (such as California’s Invasion of Privacy Act), SB 140 is predicted to trigger a wave of lawsuits against non-compliant businesses.
Practical Next Steps
With less than two months before the law becomes operative, businesses should work with legal counsel to assess how these changes may affect their operations and compliance obligations. In particular, businesses should:
Review marketing engagement channels – Identify all phone, text, and image-based communications sent to Texas consumers to determine whether they now qualify as “telephone solicitation.”
Ensure full compliance with existing telemarketing rules – Check registration status, update disclosures and call scripts, and make sure caller ID information is accurate and not blocked.
Get proper consent – Obtain documented consent to contact consumers via the specific medium used (call, text, MMS, fax).
Check & honor the Texas No-Call List – Scrub call and messaging lists against the Texas No-Call list, even if you already comply with the federal Do Not Call Registry.
Train staff & vendors – Ensure your marketing teams, call center agents, and third-party vendors understand the expanded scope of “telemarketing” under Texas law, and consider updating contracts to require compliance with Texas telemarketing and DTPA provisions.
Closing Thoughts
With SB 140 set to take effect on September 1, 2025, businesses that communicate with Texas consumers by phone, text, or similar channels face heightened compliance obligations and a significantly increased risk of litigation. Now is the time to assess your telemarketing practices, tighten internal and vendor processes, and ensure all outreach meets Texas’s expanded legal requirements. Taking proactive steps today can help avoid costly lawsuits tomorrow.
Originally published by InfoLawGroup LLP. If you would like to receive regular emails from us, in which we share updates and our take on current legal news, please subscribe to InfoLawGroup’s Insights HERE.