Texas SMS Compliance: What Every Brand Needs to Know
Starting September 1, 2025, Texas will begin enforcing a new SMS compliance law that changes how brands can send text messages to consumers. Even if your company isn’t based in Texas, these rules apply to any campaign that might reach a Texas resident. With fines as steep as $5,000 per non-compliant message, the stakes are high.
In this article, we’ll break down what the law requires, where brands are most at risk, and how you can prepare your SMS program now to stay compliant.
Why Texas SMS Law Matters for DTC Brands
Unlike email, SMS is considered a form of telemarketing under Texas law. That means additional consumer protections, stricter rules on timing, and upfront registration requirements.
For e-commerce and DTC brands, the biggest challenges are:
Identifying subscribers in Texas (phone numbers don’t always reveal location)
Navigating “Quiet Hours” restrictions when texts are prohibited
Registering with the state and posting $10,000 in financial security
Failing to comply risks more than fines — it can damage brand trust and disrupt SMS revenue streams that many DTC brands rely on.
Registration & Paperwork Requirements
Before sending marketing texts to Texas residents, businesses must register with the state and complete notarized forms. Link here. The process involves:
Form 3401 – Application for Registration
Form 3406 – Disclosure Statement
You’ll also need to satisfy a $10,000 security requirement, which can be handled three ways:
Surety Bond (Form 3403): Most cost-effective (~$250 for three years)
Certificate of Deposit (Form 3404): Processed by your bank
Cash Bond (Form 3405): Full $10,000 deposit with the state
For most brands, the surety bond is the fastest and least disruptive option.
The Impact of Quiet Hours
Perhaps the most disruptive part of the new law is its Quiet Hours restriction, which now explicitly applies to SMS.
Mon–Sat: No texts between 9 p.m. and 9 a.m.
Sunday: No texts before noon or after 9 p.m.
There are two exceptions:
If the consumer explicitly requests the message
If you have a prior or existing business relationship
Because the law doesn’t clearly define these terms, most legal experts recommend erring on the side of caution.
Best Practices for Compliance
To avoid risk and maintain customer trust, DTC marketers should take a conservative approach to SMS compliance:
Configure Quiet Hours in your SMS platform (Klaviyo, Postscript, Attentive)
Avoid late-night or early-morning sends even outside Texas time zones
Train your marketing team on timing restrictions and exceptions
Maintain clear opt-in records for every subscriber
Compliance Checklist
A step-by-step path to prepare your brand before September 1:
Secure your $10,000 coverage (surety bond recommended)
Complete and notarize Forms 3401 + 3406
Submit the correct financial form (3403, 3404, or 3405)
File paperwork with Texas authorities
Update your SMS platform to block Quiet Hour sends
Educate your team on the law and risks
Tools That Can Help
Major SMS platforms like Klaviyo, Postscript, and Attentive already offer features to help with compliance:
Quiet Hour settings to prevent accidental sends
Consent management flows to document opt-ins
Segmentation tools to refine targeting
Leveraging these features makes it easier to stay compliant without disrupting campaigns.
Looking Ahead
Texas isn’t the only state tightening SMS rules — others are likely to follow. Treat this as the start of a broader shift toward stricter regulation of SMS and MMS marketing.
By preparing now, you not only avoid fines, but also show your audience that you respect their time and privacy — a long-term win for brand trust and retention.
Disclaimer: This article is for educational purposes only and should not be considered legal advice. Consult your legal counsel for specific guidance on how these rules apply to your business.