Anti-Corruption & Compliance Blog

Texas has enacted a new “mini-TCPA” law that regulates telemarketing calls and text messages made to Texas residents, creating new compliance obligations and potential liabilities for businesses both inside and outside the state. Enforcement of the new requirements began on September 1, 2025.

Who Must Comply

The law applies broadly to any business or individual making solicitation calls, texts, or automated calls to Texas residents. This includes companies using third-party vendors or call centers to contact Texas residents, debt collectors, lead generators, and businesses promoting or selling goods or services.

Even if your company is not based in Texas, contacting Texas residents may bring you under the statute.

Key Requirements

The law imposes several call restrictions designed to curb abusive practices.

• Calling Hours – Solicitations may only be made between 8:00 a.m. and 9:00 p.m. local time for the consumer. Calls or texts outside these hours are prohibited.
• Frequency Limits – Businesses may not make more than three solicitation calls within a 24-hour period to the same person, regardless of the number used.
• Do-Not-Call Restrictions – Solicitors must honor the Texas No Call List and the federal Do Not Call Registry. Calling or texting consumers on either list—unless an exemption applies—is prohibited and may result in statutory penalties.
• Caller Identification – Callers must display a working caller ID number that accurately identifies the caller. “Spoofed” numbers or blocked IDs are not allowed.
• Disclosures – At the beginning of the call, callers must clearly identify themselves, the business on whose behalf they are calling, and the purpose of the call.
• Recordkeeping – Businesses must maintain records of call campaigns, scripts, and consents to demonstrate compliance if challenged.

$10,000 Security Deposit 

Businesses must file a $10,000 security deposit with the Texas Secretary of State before making covered calls or texts. 

Texas allows businesses to meet the $10,000 security requirement by purchasing a surety bond from an approved third-party provider, providing an assignment of a certificate of deposit or issuance of an irrevocable letter of credit.

Exemptions

The law does exempt certain businesses, including:

• Licensed professionals (e.g., insurance agents) acting within the scope of their license
• Nonprofit or charitable organizations
• Calls/texts not made for sales or solicitation purposes
• Calls/texts to current or former customers

However, there is little guidance as to the applicability of certain exemptions, such as who qualifies as a former or current customer under the law. This can make it difficult for businesses to assess whether they qualify for an exemption.

Consequences of Non-Compliance

Failing to comply with the mini-TCPA carries serious risks. The Texas Attorney General may bring enforcement actions for civil penalties and injunctive relief. Consumers may also bring private lawsuits and recover statutory damages, which can multiply quickly across large call or text campaigns. In addition, violations may result in claims against the required $10,000 security deposit, exposing businesses to further financial loss.

Next Steps

The Texas mini-TCPA creates new costs and risks. Many businesses may want to know if they qualify for an exemption or need to restructure their marketing practices in order to comply with the law. Additionally, out-of-state companies may need guidance as to whether to register under Texas Business and Organizations Code, which is a separate analysis from the requirements of the mini-TCPA.