Text message marketing has become one of the most effective tools for reaching customers. With open rates often above 90%, SMS messages cut through the noise of crowded inboxes and social feeds. But there’s a catch: the legal and financial risks of getting text marketing wrong are enormous.
In this article, you’ll learn:
- Why compliance matters more than ever with recent legal changes,
- What federal and state laws require before you hit “send,” and
- How to protect your business from lawsuits, fines, and reputational damage.
Understanding why these risks exist starts with knowing how dramatically the regulatory environment has shifted in recent months.
The Legal Landscape: More Than Just the TCPA
States are tightening their own laws, often going further than federal requirements. Texas Senate Bill 140, which amends the Texas Business and Commerce code, and became effective September 1, 2025, represents the most significant change. It classifies marketing texts as “telephone solicitations” and requires businesses to register with the state, pay a $200 annual fee, and post a $10,000 bond before sending messages to Texas residents – regardless of where your business is located.
The penalties are severe: violations can cost between $500 and $5,000 per message, with triple damages for intentional misconduct. Perhaps most concerning, consumers can now sue repeatedly under the Texas Deceptive Trade Practices Act, with prior lawsuit outcomes not limiting damages in subsequent cases.
Texas isn’t alone. Florida, Connecticut, California, and Oklahoma have enacted similar “mini-TCPA” laws. Some states impose stricter quiet hours, require specific disclosure language, or mandate faster opt-out processing. The patchwork of requirements means businesses marketing across state lines must comply with the most restrictive rules applicable to their audience.
With enforcement ramping up and penalties mounting, the question becomes: what exactly do you need to do to stay compliant?
Compliance Essentials: What Every Business Must Do
If you’re sending SMS messages, here are the non-negotiables:
Get Prior Express Written Consent
Customers must agree, clearly and in writing, to receive your texts. That means opt-in forms with language that spells out what messages they’ll get, how often, and how to stop them.
Honor Opt-Outs Immediately
Every message must include a way for customers to unsubscribe, and you must stop sending messages right away. “STOP” really must mean stop.
Respect Quiet Hours
Federal law restricts texts between 8 a.m. and 9 p.m. local time. States like Texas go further, banning texts at certain times on Sundays.
Register Where Required
In Texas, for example, you can’t legally text market without registration and a security bond. Failing to comply can trigger civil penalties of up to $5,000 per violation, plus triple damages for intentional misconduct.
Keep Records
Document every consent, opt-out, and campaign detail. If you’re sued, these records may be your only defense.
These requirements might seem straightforward, but the consequences of missing even one detail can be devastating.
Protecting Your Business: From Compliance to Strategy
It’s easy to think compliance is a box-checking exercise. In reality, it’s a business survival strategy.
A poorly run SMS campaign can:
- Trigger class action lawsuits worth millions,
- Damage your reputation with customers who feel spammed,
- Lead to blocked campaigns by carriers who enforce CTIA guidelines, and
- Consume your time, money, and attention in ways that could have been avoided.
The solution? Work with me to implement compliance into your foundational LIFT – Legal, Insurance, Financial & TaxⓇ business systems. As a LIFTed Business Advisor and attorney, I help in the following ways:
Legal: I’ll review federal, state, and carrier requirements with you and evaluate gaps that could expose your business to risk.
Insurance: I’ll also review your coverage. General liability often won’t protect against statutory violations, and you may need other tools you haven’t considered.
Financial: I’ll ensure your financial systems are solid and can support your business growth, as well as a possible legal challenge.
Tax: Finally, I’ll evaluate your tax structure and tax systems so you’re keeping as much money as you can and not having to make unnecessary payments to the government.
Given the risks, smart business owners should not try to cobble together these systems on their own. Instead, professional, trusted support is crucial to ensure your business is not only compliant with all applicable laws, but also built on a solid foundation.
Take Action Now
SMS marketing can be a powerful growth tool, but it’s also a legal minefield. Don’t assume a template, DIY service, or outside vendor has you covered. At the end of the day, you are responsible for compliance, even if a third-party sends the texts on your behalf.
As your LIFTed Business Advisor and attorney, I help you build business systems that protect your growth instead of putting it at risk. My process begins with a LIFT Business Breakthrough™ Session, where together we’ll review the four foundational systems of your business – legal, insurance, financial, and tax – and ensure you have the support you need to make smart and strategic decisions. Then we’ll create an action plan to fill in gaps we identify so your business is healthy and protected from potential risk.
Book your 15-minute discovery call today to get started.
This article is a service of a Personal Family Lawyer® Firm and LIFTed Advisors® Attorney. I offer a complete spectrum of legal services for businesses and can help you make the wisest choices with your business throughout life and in the event of your death. I also offer a LIFT Business Breakthrough Session, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.
The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.