Hey everyone, Zac Fromson here.

I’ve been getting a lot of questions about the new Texas telemarketing law (an amendment to the Texas Business & Commerce Code, Chapter 302) that takes effect on September 1, 2025. This update expands the law from covering only voice calls to now including marketing text messages.

The stakes are high — non-compliance could mean penalties of up to $5,000 per message. Understandably, brands are trying to figure out: Do I need to register? What if my list is 100% opted in? Do I really need to put down $10,000?

Here’s a breakdown of what we know, what’s still unclear, and how you can prepare.

Disclaimer: This information is for educational purposes only and is not legal advice. Please consult your legal counsel to understand how this applies to your business.

What’s changing in Texas?

• Before: Chapter 302 applied only to telephone calls.
• Now: As of Sept 1, 2025, the definition of “telephone solicitation” includes SMS messages.
• Requirement: Businesses sending marketing texts to Texas residents or sending SMS from within Texas must register with the Texas Secretary of State and post a $10,000 security (deposit, surety bond, or letter of credit) — unless they qualify for an exemption.

Resources:

• Texas Secretary of State – Telemarketing Registration FAQs
• Texas Business & Commerce Code §302

Do double-opted in subscribers count as “customers”?

This has been a hot topic in the Community. Here’s the key:

• The law does not define “customer.” Instead, Chapter 302 uses terms like purchaser (someone who has already bought from you) and salesperson/seller.
• A double opt-in subscriber who hasn’t purchased isn’t automatically considered a “customer” under the law.
• The exemption for “current or former customers” only applies if:
   
  1. The person has purchased from you, and
  2. Your business has operated under the same name in Texas for at least two years.

So, even if someone double opted-in months ago, if they’re a Texas resident who hasn’t purchased, the law may still apply.

Can I just exclude Texas numbers instead of registering?

Some brands are choosing this path, at least for now. You can create a segment in Klaviyo to identify Texas-based SMS subscribers and exclude them from campaigns/flows if you don’t plan to register.

How to build a Texas segment in Klaviyo:

1. Go to Lists & Segments → Create Segment
2. Add conditions like:
   • Properties about someone → State equals Texas
   • OR phone number starts with area codes: 210, 214, 254, 281, 325, 346, 361, 409, 430, 432, 469, 512, 682, 713, 737, 806, 817, 830, 832, 903, 915, 936, 940, 956, 972, 979
3. Exclude this segment from your SMS campaigns and flows.

Important caveat: This method is not perfect. Some Texas residents may have out-of-state numbers, and some people with Texas area codes may live elsewhere. That means:

• You could still accidentally send to Texas residents.
• You could also exclude people who’ve moved out of Texas but kept their old number.

For brands not registering, this is a risk decision you’ll want to make in partnership with your legal team.

How do I handle the $10,000 security deposit?

The $10K requirement has been another big sticking point. The good news: you don’t necessarily need to hand over $10K in cash. Texas allows a few options:

• Surety bond: Instead of posting $10K, you pay an insurance company a yearly premium (often $200–$500 depending on your credit). The bond guarantees funds are available if a claim is made.
• Letter of credit: Your bank can issue a letter of credit for $10K, which satisfies the requirement without tying up cash.
  Certificate of deposit (CD): You can deposit $10K in a CD with your bank and assign it to the Secretary of State.

If you’re looking for a surety bond provider, many insurance brokers can issue them. A good place to start is your existing business insurance provider or bank — they often have bond programs.

What should brands do next?

Here’s a practical path forward:

1. Check your Texas audience size
   • In Klaviyo, create a Texas segment (using State = Texas or area codes).
   • Go to Analytics → Segment Performance to see how much revenue is tied to that segment.
      
2. Evaluate exemptions
   • If you’re a publicly traded company, nonprofit, school, food seller, or Texas retailer with 2+ years in business — you may be exempt.
      
3. Decide on your compliance approach
    
   • Register with Texas → Download the registration form, pay the $200 fee, and provide the $10K security (via deposit, surety bond, or letter of credit).
   • Exclude Texas numbers → Use Klaviyo segments to filter out Texas area codes and profiles marked as being in Texas. Keep in mind this isn’t foolproof.
   • Consult your legal team → If you rely heavily on opt-ins from Texas but don’t meet exemptions, it’s worth getting professional legal advice.
      
4. Plan for ongoing compliance
    
   • Registration needs to be renewed annually.
   • Even if you’re exempt, continue following SMS best practices: clear consent, easy opt-out (STOP), and transparent messaging

Final thoughts

This new law has created a lot of questions, and you’re not alone if you’re still figuring out your path. From my conversations with other agencies, very little have registered so far. Most are still weighing exemptions, risk tolerance, and the cost of a surety bond.

My advice? Don’t panic, but don’t ignore this either. Check your data in Klaviyo, see if you qualify for an exemption, and talk with your legal counsel about the safest path forward for your business.