Understanding Texas’s Business and Commerce Code Update: What It Means for Your Marketing

News | Jul 31, 2025

As a digital marketing agency that helps businesses with email and SMS marketing, we know how critical it is to stay ahead of compliance updates. One major change is coming that could directly impact how you send marketing messages: the Texas Business and Commerce Code has been amended to include text messages.

Starting September 1, 2025, businesses sending marketing text messages to Texas residents—or businesses located in Texas sending these messages—may be required to register with the Texas Secretary of State.

In this post, we’ll break down what’s changing, who needs to act, and how to ensure your marketing campaigns stay compliant.

What’s Changing?

Previously, the Texas Business and Commerce Code applied only to voice telephone calls. However, the recent amendment expands the definition of “telephone solicitation” to include text messages (SMS).

This means:

If you’re sending marketing text messages to Texas residents, you may now need to register your business.
The same requirement applies if you’re based in Texas and sending texts to any audience.

Effective Date: September 1, 2025

Key Reference Links:

Are There Exemptions?

Yes. Some businesses are exempt from the registration requirement. Exemptions include, but are not limited to:

Certain publicly traded companies and their subsidiaries
Certain financial institutions
Educational institutions
501(c)(3) nonprofits
Businesses marketing the sale of food
Retail sellers with physical stores (if they’ve operated under the same name for the last two years and a majority of sales occur in-store)
Businesses contacting current or former customers (if they’ve operated under the same name for the last two years)

Tip: Review the law’s language carefully or consult legal counsel to confirm if an exemption applies to your business.

How Do You Register?

Registering with the Texas Secretary of State is a multi-step process:

Fill Out and Submit the Registration Form
- Registration fee: $200
- Valid for one year; must be renewed annually
Post a $10,000 Security Deposit
- Can be in the form of:
  - A bond executed by a corporate security
  - An irrevocable letter of credit
  - Certain certificates of deposit
- Details: Texas Business and Commerce Code § 302.107
Wait for Certificate Issuance
- Your registration is only valid when the Texas Secretary of State issues your registration certificate, not when you submit the application.

Next Steps for Businesses

If you use SMS marketing, now is the time to prepare:

Audit your marketing lists – Do you send texts to Texas residents?
Evaluate your business location – Are you based in Texas?
Check for exemptions – Does your business qualify for any?
Talk to a legal expert – Compliance can be nuanced; seek professional guidance.
Update your SMS marketing strategy – If registration is required, ensure your team can meet the requirements by September 1, 2025.

Why Compliance Matters in SMS Marketing

Failure to comply with these regulations can result in penalties and reputational damage. As your digital marketing partner, we can help you navigate these updates and develop SMS campaigns that are both effective and compliant.

If you’re unsure how these changes affect your business, we recommend consulting with legal counsel and contacting the Texas Secretary of State for clarification.