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Recently, the state of Texas amended their commerce laws to apply to text messages sent by businesses. Please read below to get an understanding of what’s changing and how to stay compliant.
Note: The following updates are meant to be informational and educational. They are not intended as legal advice. Please consult with qualified legal counsel to ensure that your business is staying compliant, if needed.

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Important Updates

The Texas Business and Commerce Code previously only applied to voice telephone communication. Recently, the law expanded to include text messages as well. This change goes into effect on September 1, 2025.

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What does this mean for my business?

Your business may need to register with the Texas Secretary of State if you are sending marketing text messages to Texas residents, or if your business is located in Texas and sending marketing texts. You can review the new Texas Business and Commerce Code below to determine whether or not these updates apply to you:

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Are there exemptions?

The law exempts certain businesses from needing to register. These 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 brick and mortar locations if it has operated under the same name for the last (2) years and a majority of sales occur at retail locations
  • Businesses contacting their current or former customers if that business has operated under the same business name for the last (2) years
Note: Our team recommends checking the specific language used in the law to determine whether or not your business is exempt.

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How do I register my business?

To register your business with the Texas Secretary of State:
  • Fill out and submit this registration form.
  • Pay an application fee of $200.
  • Texas law also requires businesses to post a $10,000 security deposit in the form of a bond executed by a corporate security, an irrevocable letter of credit, or certain certificates of deposit.
Your registration will need to be renewed again after 1 year.
You can find more information regarding the security deposit in Section 302.107 of the current law.
Please note that your registration is only valid when Texas’s Secretary of State issues your business a registration certificate, not when the application is submitted. 

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Meeting the $10,000 Security Deposit Requirement

To comply with the updated Texas Business and Commerce Code, businesses must provide a $10,000 security deposit in the form of a bond. Privy has partnered with Surety Bonds to make this process simple and affordable. Click here to get started.
  • You can purchase a Texas Telephone Solicitation Bond for just $100 per year.
  • The application requires only your contact information, company name, and legal address.
  • Privy does not receive any compensation if you choose to purchase through Surety Bonds.
If you prefer not to take out a bond, you may instead provide a Letter of Credit or a Certificate of Deposit. Both alternatives must be issued by a financial institution, so we recommend working directly with your bank to set them up.

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Next Steps

Review your SMS marketing practices to determine whether or not these changes apply to your business. In the case they do, we recommend speaking with a qualified legal counsel to determine any additional next steps needed prior to the change on September 1, 2025. If you have any questions, you can also contact the Texas Secretary of State for further guidance.