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Governor Signs Expansive Telemarketing Law
Governor Abott signed into law Texas Bill SB140 – This bill drastically amends the Texas Mini-TCPA statute – the Texas Business & Commerce Code (“TBCC”) by creating a private right of action under the Deceptive Trade Practices act that provides triple-stacked liability, extends the definition of telephone solicitations to cover text messages, and gives an open door to serial lawsuits.
The new law will take effect on September 1, 2025.
Expanded Definition of “Telephone Call” and “Telephone Solicitation” – A telemarketing call no longer only includes a voice call – it now includes text messages, images, graphics messages, or other electronic transitions initiated by a seller to induce a person to purchase, rent, claim, or receive an item. SB140 brings SMS, MMS, or other visual solicitations squarely within the scope of the TBCC.
New Private Right of Action Automatically Afforded Under Deceptive Trade Practices Act (“DTPA”) – The new Texas Law creates a new private right of action under the DTPA for telemarketing violations. The new law substantially increases the potential exposure for a Texas telemarketing violation Under the DTPA. For example, consumers under the new law will be able to seek treble damages, mental anguish awards and attorney’s fees. This would include telemarketing activities such as noncompliance with call-hour restrictions, failure to register, ignoring opt out requests, and using prohibited automated dialing or announcing devices (“ADAD”).
Private Right of Action for Repeat Claims – The new law clarifies that multiple legal recoveries for the same violation will not limit future recovery.
