On September 1, 2025, significant changes to the Texas Business & Commerce Code will take effect, broadening the scope of the state’s “telephone solicitation” laws. For the first time, the statute will explicitly cover text messages, graphic transmissions, and images, not just traditional phone calls. For small business owners, this expansion has created uncertainty. What kinds of messages are still safe to send? Will appointment reminders or employee notifications now expose a business to lawsuits? What about marketing texts to loyal customers who have opted in?
The answers matter, because the risks are substantial. Each violation can bring civil penalties of up to $5,000, private lawsuits under the Texas Deceptive Trade Practices Act (DTPA), and even criminal liability in certain cases. Texas courts have historically enforced consumer protection statutes aggressively, which means every business should treat compliance with this new law as a high-priority issue. Below is a brief guide to what the law means in practice, and the specific do’s and don’ts small business owners should follow to avoid costly mistakes.
Do understand what counts as “telephone solicitation.”
The heart of the statute is its definition of “telephone solicitation.” As amended, it means any call or text “initiated by a seller or salesperson to induce a person to purchase, rent, claim, or receive an item.” The key word here is induce. If the purpose of your message is to persuade someone to buy, rent, or claim something, it is solicitation. If the purpose is to provide information, such as reminding a client of an appointment or notifying an employee of open enrollment in health benefits, it is not solicitation.
Examples:
“Your annual tax appointment is scheduled for March 15 at 2 p.m.” – informational, not solicitation.
“Schedule today and receive 15% off your tax preparation services.” – solicitation.
Understanding this distinction is the foundation of compliance.
Don’t assume consent automatically protects you.
Many business owners believe that if a customer provides their number and agrees to receive texts, then all types of messages are allowed. That assumption is dangerous.
Consent does not change whether a message is considered solicitation under Texas law. A promotional message is solicitation even if the customer opted in. Consent may reduce exposure under federal law, such as the Telephone Consumer Protection Act (TCPA), but in Texas, the analysis hinges on the purpose and content of the message.
Bottom line: Do not treat consent as a license to promote anything by text. Consent only ensures the recipient is not surprised, but it does not insulate you from liability.
Do keep informational and promotional messages strictly separate.
One of the most common mistakes businesses make is blending different types of content into a single message. For example, a dentist might send:
“Reminder: Your cleaning is tomorrow at 10 a.m. — and we are offering half-off whitening kits this week.”
The first part is informational, but the second part is solicitation. Because the law is “liberally construed” to protect consumers, that entire message could be treated as solicitation.
The safest practice is to create bright lines. Use one dedicated system or phone number for reminders, scheduling, and compliance-related texts. Use another system for marketing campaigns. Never mix them. This way, if you ever have to prove that your reminder program was non-solicitation, you will have clean records to support your position.
Don’t underestimate the penalties and litigation risks.
The amended law explicitly ties violations of Chapter 302 to the Texas DTPA. That means every improper solicitation could be deemed a “false, misleading, or deceptive act,” opening the door to private lawsuits.
Penalties include:
- Up to $5,000 per violation in civil fines;
- Treble damages in private DTPA actions if the conduct is found knowing or intentional; and
- Separate criminal liability for violations of registration and disclosure requirements.
For a small business, a single texting campaign that goes wrong could result in multiple lawsuits, spiraling defense costs, and reputational damage. Even if you win, the distraction and expense can cripple your operations.
Do be aware of exemptions—but do not rely on them as your main defense.
The statute includes numerous exemptions in Subchapter B, such as:
- Securities dealers and publicly traded corporations;
- Licensed insurers and supervised financial institutions;
- Educational institutions and 501(c)(3) nonprofits;
- Businesses soliciting existing customers for certain contracts; and
- Food sellers and catalog companies meeting strict criteria.
While these exemptions are real, they are narrowly construed, and the burden of proving them is on the business claiming them. For most small businesses, it is far stronger to stay outside the definition of “solicitation” altogether rather than rely on an exemption as a defense.
Key takeaway: Build compliance around the content of your messages, not on the hope that an exemption will apply.
Don’t engage in “soft selling” disguised as information.
Small businesses sometimes attempt to frame marketing as “helpful reminders.” For example:
“Your HVAC inspection is scheduled for Tuesday. Ask us about our premium annual maintenance plan.”
While the first sentence is informational, the second is a solicitation. This type of “soft selling” can still expose you to liability. Courts will look at the overall intent and effect of the communication, not just the labels you put on it.
If the text even indirectly nudges the recipient toward making a purchase, it risks classification as solicitation. Avoid the temptation to sneak in promotional language.
Do maintain strong compliance documentation.
The businesses that will fare best under the new law are those that can prove they took compliance seriously. Business owners should:
- Draft written policies specifying that certain lists (like employee benefit reminders) are never used for promotions;
- Train staff and vendors on the difference between informational and promotional content;
- Archive every mass text sent, with clear labels indicating its purpose; and
- Review all templates periodically to confirm they remain informational.
If you are ever challenged by a regulator or plaintiff, contemporaneous records of your compliance program can make the difference between quick dismissal and costly litigation.
Don’t delay preparing until the effective date.
The law becomes effective on September 1, 2025. That may feel distant, but waiting is risky. Now is the time to audit your current practices. Review every system you use to text customers or employees. Identify whether messages are purely informational or cross into solicitation. Segregate lists and numbers accordingly.
The earlier you take these steps, the easier it will be to demonstrate compliance and avoid last-minute errors. Regulators will expect you to be ready on day one.
Do think about broader reputation and trust.
Beyond legal compliance, how you communicate with customers reflects on your brand. People are already skeptical of marketing texts. Overstepping by sending disguised solicitations risks not just lawsuits but also trust and goodwill. By keeping reminders clean, professional, and truly informational, you reinforce your reputation as a trustworthy business.
In a crowded market, that reputation can be worth more than any short-term sales boost a risky promotional text might generate.
Conclusion
The expansion of Texas’s telephone solicitation law marks a turning point. What used to be a narrow telemarketing statute now extends into the realm of text messaging, where most businesses interact daily with customers and employees.
For small business owners, the message is clear:
- Keep informational and promotional messages strictly separate.
- Avoid “soft selling” in compliance-related texts.
- Do not rely on consent or exemptions as your primary defense.
- Document your compliance program and audit your practices now.
By following these do’s and don’ts, you can continue to use texting as a powerful tool for communication without exposing your business to the heavy penalties and litigation risks the new law creates. Compliance is not just about staying out of court. It is about protecting your reputation, respecting your customers and employees, and building a business that thrives under the watchful eye of regulators and the marketplace alike.
