Texas SB 140: The Latest and Why It’s a Win for Postscript Customers

The State of Texas, through the Attorney General’s office, has made it official: SB 140 does not apply to Postscript customers or EIA members who send messages with prior consent.

In the State’s own words, applying SB 140 to consent-based marketing messages would be “at odds with the stated purpose” of the law and ”teeters on absurdity”. As a result, the State has moved to dismiss the case because there is no longer a dispute: consent-driven SMS programs are outside SB 140’s scope.

What this means for Postscript customers and EIA members:

• No registration. You don’t have to file paperwork with the Texas Secretary of State, pay fees, or keep up with quarterly/annual updates just to keep your SMS program running. In fact, registration would likely be counterproductive.

• No bonding. You’re not required to post a $10,000 security bond (or equivalent), saving you from tying up cash or credit in regulatory red tape.

• No $5,000 per-message penalties. Because consent-based texts are out of scope, you don’t face the threat of massive fines stacking up for every compliant message you send.

• No disclosures in every text. You don’t have to clutter your marketing with mandatory legal language or sensitive business information, which apply if you register under SB 140.

• Freedom to grow in Texas. You can now confidently send texts to Texas recipients without second-guessing compliance risk meaning you can fully promote your brand, drive sales, and continue earning revenue from one of the largest consumer markets in the country.

This is a huge win for Postscript customers and EIA members. It validates our decision to hold firm, not rush into costly or unnecessary compliance steps, and focus instead on protecting our customers’ long-term interests.

Earlier in September, we shared an update about Texas SB 140: a vague new law that threatened ecommerce brands with steep penalties (up to $5,000 per message) and burdensome registration requirements even for SMS programs that have compliantly collected phone numbers with explicit and confirmed opt-ins. 

From the outset, Postscript and the EIA consistently advised that this should not be a distraction and that the hysteria propagated in the space was overblown.   

The Ecommerce Innovation Alliance (EIA) — in partnership with Postscript, and Texas based Flux Footwear, filed a federal lawsuit in Texas to challenge SB 140. We examined the legislative history, the ambiguities in the law, and explained why we believed it was unnecessary for Postscript customers who send messages only with prior consent to register.  We also explained some of the negative consequences of registration.

Instead of reacting out of fear, Postscript and the EIA took deliberate action, securing clarity and resolution so merchants can continue growing their businesses without being burdened by nonsensical regulations.

If you’re using another provider that recommended registration, your situation may be more complicated. Registration itself could obligate you to ongoing disclosures or updates (including the on-going costs and burdensome obligations), even though the state has now clarified the law doesn’t apply to prior-consent messaging. There is nothing in the Texas AG’s statements that would automatically result in pending applications being withdrawn. Therefore, companies who already filed a registration application may be expected to continue to comply with the legal requirements applicable to registered telemarketers.

Our advice: ask your SMS provider or counsel how this new development affects you and whether your registration might create more problems than it solves.

From the beginning, we’ve maintained that Texas quiet hours rules were written for phone calls, not SMS. With this new decision, that position is further supported. Quiet hours in Postscript remain an optional feature, available for shops that want them.

The EIA will continue to close out the legal process around SB 140. But for all practical purposes, the matter is resolved. Postscript customers can continue messaging Texas recipients confidently, knowing you’re protected.

To stay informed:

• EIA Members: You’ll receive updates through the EIA’s email newsletter. Be sure to log in to the Member Portal. You can add up to 10 colleagues so your team is also in the loop.

• Not on Postscript? Switch to Postscript today. Membership includes protection under this ruling and ensures you’re covered in future fights like these.

This outcome reflects Postscript and the EIA’s ongoing commitment to protecting merchants in a thoughtful, responsible way. We didn’t rush to impose extra costs or unnecessary steps on our customers, nor did we resort to stirring up fear in the ecommerce space. Instead, we took a measured, customer-first approach,  and that strategy delivered the clarity merchants needed. 

We challenged SB 140 because it was vague, risky, and unfair to ecommerce businesses. The state has now confirmed that properly consented text messaging falls outside its scope. With this resolution, you can continue marketing to Texas customers with clarity and keep driving revenue in one of the country’s largest consumer markets.

To learn more about the EIA and how we’re fighting on the side of ecommerce brands everywhere, visit their website here.