What’s Happening in Texas — And What We’re Doing About It

If you’ve heard confusing things about Texas SB 140, you’re not alone. SB 140 was pitched as a consumer protection law. In reality, it’s a vague new law with steep penalties (up to $5,000 per message) and unclear rules for businesses using SMS — even when messages are fully opt-in and legally compliant. And unfortunately, many in our industry have taken a hands-off approach: “Here’s the law. Figure it out.”

We don't think that's good enough. So we're doing something about it.

On September 1, 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 believe this law is unconstitutional, harmful to small businesses, and wide open to abuse by opportunistic lawyers. The lawsuit challenges two major problems:

• Free speech violations: The law limits what brands can say in messages — even to people who’ve opted in to receive these exact types of messages.

• Merchant risk and on-going burden: To “register” under SB 140, businesses would have to publicly disclose sensitive details like supplier names, product costs, and more and do it quarterly.

Registering doesn’t just invite scrutiny. It could legally bind you to steeper $5,000 per message penalties, force you to share private business info, and set a precedent for other states to follow.

Here’s the good news: If this lawsuit succeeds, all Postscript customers (through your EIA membership included with Postscript) will benefit from the ruling.

That means:

• No registration

• No bonding

• No $5,000-per-message risk

• No special disclosures

• No extra Texas filtering

And the timeline? We’ve asked the courts to fast-track this case, and we expect a ruling on our Temporary Restraining Order by early October.

The short version: You don’t need to do anything yet. While we wait for legal clarity, you should know:

• Postscript is not recommending registration. We believe it could expose you to more risk, not less. Though ultimately, there is no perfect answer and it depends on your circumstances (see more on this below)
  Postscript has not registered under SB 140. We won’t validate vague laws that harm good actors

• We’re assisting every customer with access to legal support. You have access to discounted TCPA counsel and guidance from industry experts

• You get benefits of the EIA suit. So long as you haven’t opted out of the EIA and haven’t registered with Texas under SB 140, you are automatically included as a party receiving the benefits of any judicial rulings in favor of the EIA.

Technically, the law is in effect. But initial enforcement is likely to come from shakedown lawyers (private parties), not regulators.

These firms mass-send demand letters hoping to scare brands into paying quick settlements. They don’t discriminate between good and bad actors. If you’ve ever received one, you know: it’s not about justice — it’s about fear.

We’ve seen this before. The best defense? Engage, pushback but don’t pay. Don’t fund the firms sending these letters. When brands push back (cheaply, with the right legal partner), the letters stop and the cycle breaks for your shop and the broader ecosystem.

Here’s what we’ve seen work across other recent shakedown campaigns (such as quiet hours and Florida callback):

• Brands that used Postscript’s compliant opt-in tools

• Brands that didn’t pay the shakedown

• Brands that worked with vetted legal partners for far less than the cost of settling and well below the returns from SMS

The result? They avoided paying, didn’t get re-targeted, and didn’t fund the next wave of lawsuits. Fighting back works, see the trend of Postscript customers that fought back:

We can’t give you individual legal advice, but we can point you in the right direction.

• Watch the webinar with our in-house legal expert David Carter and Postscript-vetted ecommerce TCPA attorney Alexis Beuse

• Request a legal consult with a vetted TCPA specialist at a discounted Postscript rate

And most importantly, stay tuned. We’ll share updates the moment the court rules.

This law is vague. The risks are real. But so is the support behind you. We’re not sitting on the sidelines. We’re fighting for clarity — and for your right to run your business without fear.

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