Legal Battles Heat Up Over Texas Telemarketing Protections

A new law to protect Texas residents is challenged in court.

Texas Senate Bill 140 Protects Consumers From Telemarketers

A lawsuit has been filed against a new law to protect consumers from telemarketers. Senate Bill 140 expanded the definition of “telephone solicitation” to include text messages which means written consent must be obtained from consumers before a text is sent.

Additional Requirements of Texas Senate Bill 140

The new law also requires companies to provide consumers with the ability to opt out and register with the state to avoid penalties. Texas residents can also sue businesses that do not follow the rules. The financial hit for businesses could be significant since residents may now file multiple lawsuits at one time.

Penalties For Businesses That Do Not Adhere to the New Law

Businesses found to be in noncompliance will face substantial fines. Prior to the law’s passage, Texas was already among states imposing high penalties for violations. In Texas, statutory damages ranged from $500 to $5,000 per violation.

The Businesses Behind the Lawsuit Against Senate Bill 140 in Texas

The lawsuit against Texas state officials was filed by a group of businesses, that argued the text messages are needed for marketing purposes. Ecommerce Innovation Alliance, Flux Footwear, and Postscript, are several of the businesses taking part in the lawsuit.

How Does the Lawsuit Against Texas Senate Bill 140 affect Texans?

The law that went into effect on September 1st is still in place for Texans. Residents will continue to have the right to opt out of unwanted marketing texts, report violators, and file lawsuits against businesses breaking the rules.