Texas' Business and Commerce Code Update - Staying Texting Compliant

This article explains the Texas laws related to sending marketing texts to non-customers, that go into effect on September 1, 2025.

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What Does the Code Update Mean?

Is Registration Worth the Hassle?

How Do I Register My Shop?

Consent Collection - Steer Best Practices

What Does the Code Update Mean?

The Texas Business and Commerce Code, which previously covered only voice calls, has been amended to also include text messages. Beginning September 1, 2025, businesses that send marketing text messages to Texas residents, or businesses located in Texas that send marketing texts, may be required to register with the Texas Secretary of State.

It’s important to review the law to determine whether these changes apply to your business. You can find the relevant resources below:

• The text of the current law: Texas Business and Commerce Code § 302.001, et seq.
• The amendments to the law going into effect on September 1, 2025; includes the revised definition of “telephone solicitation” to include text messages: S.B. 140
• The law exempts the following use cases and businesses 
  • Those with brick and mortar locations if it has operated under the same name for the last two 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 two years

Is Registration Worth the Hassle?

We get it—registration feels frustrating and unnecessary. The good news: staying compliant is easier than it seems, and it lets you keep texting customers with confidence.

I've determined, my business needs comply with this new law. How do I register?

You will need to register with the Texas Secretary of State. Registration requires specific information about your business; you will need to fill out the Registration Form and submit to the Texas Secretary of State. 

To register, there will be a $200 application fee; your registration will need to be renewed annually. In addition, Texas law requires that businesses post a $10,000 security deposit; this does not mean you have to pay $10,000 up front. For most companies, the best option may be a Surety Bond (suretybonds.com). In this case, you don't need to fully give up the $10,000 as the deposit, but instead pay a small annual fee (typically $100/year).

Another option is to attest you have the money via a Certificate of Deposit or Letter of Credit.

Additional information regarding the form of any security can be found in Section 302.107 of the law.

Consent Collection - Steer Best Practices

At Steer, we strive to keep our products in compliance with all Federal and State Regulations. We also aim to keep our customer's informed on best practices they can do to ensure their Shop is staying compliant with all regulations.

It is important to collect consent from your customers before communicating with them via text. Communication without consent is solicitation and could put your shop at risk of legal trouble.

We've included key elements you should always include in when collecting communication consent from your customers; along with ways in which you can collect consent from your customers.

Key elements to always include for compliance:

1. Business name.

2. What type of messages they’ll get (appointment reminders, specials, service updates and reminders...)

3. Message frequency (e.g., “recurring” or “frequency varies”).

4. Standard disclaimer: “Msg & data rates may apply.”

5. Clear opt-out instructions: “Reply STOP to unsubscribe.”

6. Link to privacy policy/terms if possible.

Shop Management System/Point of Sale Collection:

Include Opt-In language on customer invoices to collect consent for texting. Be sure to include all Key Elements from above in a printed consent statement with a signature line.

Example Wording:

“You consent to receive text messages from {Your Shop Name}. Messages may include appointment reminders, follow-ups, and service reminders. Message & Data Rates may apply. Message frequency varies. Opt-in data will not be shared with 3rd parties for marketing purposes. Reply STOP at any time to opt-out. Text HELP for support.”

Web Forms / Online Sign-Ups

Collect consent to text your customers utilizing a web form on your website. Add a checkbox (unchecked by default) with compliant disclosure.

Example Wording:

"By checking this box, you consent to receive text messages from {Your Shop}. Messages may include appointment reminders, follow-ups, and service reminders. Message & Data Rates may apply. Message frequency varies. Opt-in data will not be shared with 3rd parties for marketing purposes. Reply STOP at any time to opt-out. Text HELP for support.

Verbal Consent Collection at Sale

A common best practice is to have your team verbally collect consent when checking the customer in for their appointment; or even when when collecting payment for their invoice post appointment. If collecting verbal consent there are few requirements to follow to stay compliant:

1. Be Clear About What They’re Agreeing To
   You must state all (6) of the key fields from the Key Elements to Include for Compliance.

2. Document the Consent

   1. If collected over the phone, keep a recording (if legally allowed in your state) or note in your Shop Management System, or in Steer, that verbal consent was given.

   2. Write down the date, time, and method of consent collection.

   3. Send a Confirmation Text (double opt-in recommended)
      Example Wording:

      "Reply YES to consent to receive text messages from {Your Shop}. Messages may include appointment reminders, follow-ups, and service reminders. Message & Data Rates may apply. Message frequency varies. Opt-in data will not be shared with 3rd parties for marketing purposes. Reply STOP at any time to opt-out. Text HELP for support."

      This confirmation text itself documents consent.