Texas now treats marketing text messages the same as telemarketing calls. If you send promotional SMS/MMS to Texas residents, you may need to register with the state and post a $10,000 security bond—unless you qualify for an exemption.
Who Must Register?
You must register with the Texas Secretary of State and post the $10,000 bond if:
- You send marketing texts to anyone in Texas who is not your current or former customer, or
- You have not been operating under the same business name for at least two years.
Who Is Exempt?
You do not need to register or post the bond if:
- Your business has operated under the same name for at least 2 years, and
- You only send SMS to current or former customers.
No paperwork is required to claim this exemption, but keep documentation proving your status in case of an audit or lawsuit.
Note: Exemption, compliance, and registration are the sole responsibility of the business owner—not the SMS platform or any third-party agency managing your campaigns.
Other Requirements Still Apply
Even if exempt, you must:
- Obtain proper consent and honor opt-outs.
- Avoid using prohibited autodialers.
- Send texts only during permitted hours.
Marketing to Texans Who Haven’t Purchased?
If you want to grow your SMS list in Texas beyond past customers, you’ll need to:
- Register with the state ($200 annual fee).
- Post a $10,000 bond as security.
- File quarterly updates on your SMS activity.
How to Decide if the $10,000 Bond Is Worth It
Ask yourself:
-
How many Texans are in your non-customer list?
Example: If you have 50,000 Texas leads who opted in but haven’t purchased, the cost may be justified. -
What is the projected revenue per contact?
If expected revenue exceeds compliance costs, registration may be worthwhile. -
Are you prepared to handle litigation risk?
Violating the law opens you to treble damages under the Texas DTPA.
Determining If Someone Is in Texas
- Phone area codes: Helpful but not always accurate, as many people keep numbers after moving.
- Physical address: The most reliable indicator when collected during checkout or signup.
- Other signals: Shipping/billing address, IP geolocation, or explicit state selection during opt-in.
If you do not want to market to Texans and you lack address data:
- Treat all contacts with Texas area codes as Texas residents to stay safe, or
- Segment using any available data and exclude uncertain contacts.
Businesses Based in Texas
For Texas-based ecommerce companies, the same rules apply. Being located in Texas does not provide any special exemption. You must still evaluate your messaging lists:
- If you send texts to non-customers, you must register and post the $10,000 bond, even if recipients are in-state.
- If you only message current or former customers and meet the 2-year same-name rule, you remain exempt.
- Operating from Texas simply means the state has direct jurisdiction over you.
FAQs
Do I have to file paperwork if I qualify for the exemption?
No. There’s no form to submit, but keep proof of your 2-year history and customer-only messaging.
Does this apply only to Texas-based businesses?
No. It applies to any business sending marketing texts to Texas residents.
What if I use Klaviyo or another SMS provider?
The platform isn’t responsible for compliance—you are. The exemption and registration are tied to your business, not the software or a third-party agency.
Can I just ignore this?
Not advisable. Texas allows consumers to sue directly under the DTPA, with potential for triple damages and attorney fees.
Key Takeaway
- If you only text past buyers and meet the 2-year rule → No bond, no registration.
- If you text prospects or leads in Texas → Prepare to register and post $10,000.
- Audit your Texas SMS list now to determine if expanding outreach is worth the compliance cost.
