Texas telemarketing laws provide specific exemptions for certain organizations, like banks, insurance companies, and non-profits. These exemptions allow them to operate outside standard telemarketing rules. However, understanding these exemptions is critical to identifying legitimate calls versus potential scams.
Key points to know:
- Exempt Entities: Banks, insurance companies, charities, and businesses with an existing relationship can bypass some telemarketing rules.
- New Rules (Effective Sept. 1, 2025): Senate Bill 140 expands telemarketing definitions to include texts and digital messages, introduces stricter penalties, and allows consumers to sue violators directly.
- Protections for Consumers: Texas No-Call List, time restrictions (calls only allowed 9 a.m.–9 p.m.), and mandatory caller disclosures help protect against unwanted calls.
- Red Flags: Calls outside permitted hours, unclear caller identities, or high-pressure tactics may indicate violations.
If you suspect violations, document details, report them to authorities, and know your rights under Texas and federal laws. You can recover damages ranging from $500 to $5,000 per violation. Stay informed to protect yourself from fraudulent practices.
Texas Telemarketing Laws Overview
Texas telemarketing rules are outlined in Chapters 301-305 of the Texas Business & Commerce Code. At the heart of these regulations is the Texas Telemarketing Disclosure and Privacy Act, which lays out clear guidelines on how telemarketers can contact consumers while safeguarding them from intrusive or unwanted calls.
"This chapter shall be interpreted broadly to promote its underlying purpose to protect the public against false, misleading, abusive, or deceptive practices in the telemarketing business." – Texas Business & Commerce Code, Sec. 304.005
The Public Utility Commission of Texas (PUC) plays a key role in enforcing these rules. The PUC oversees the Texas No Call Lists, investigates reported violations, and has the authority to impose administrative and civil penalties. These responsibilities ensure that both exempt and non-exempt telemarketing practices align with consumer protection standards.
Key Consumer Protections in Texas Telemarketing Laws
Texas laws include several safeguards to protect residents from unwanted telemarketing calls. One of the most effective tools is the Texas No-Call List, which allows consumers to register their phone numbers to block unsolicited calls. Telemarketers are required to update their databases within 60 days of a number being added to the list and must stop contacting those numbers.
Time restrictions also help minimize disruptions. Telemarketers can only call between 9 a.m. and 9 p.m. on weekdays, while Sunday calls are restricted to the hours of noon to 9 p.m..
To promote transparency, telemarketers must comply with caller identification requirements, ensuring their name and number are visible when contacting consumers.
Additional rules mandate opt-out mechanisms for certain communications. Telemarketers must update their call lists quarterly, and failing to comply can result in financial penalties.
Recent Changes and Expanded Definitions
In June 2025, Senate Bill 140 (SB140) was signed into law, taking effect on September 1, 2025. This legislation strengthens Texas telemarketing protections by expanding the definition of "telephone solicitation" to include not just calls but also text messages, image messages, and other electronic transmissions aimed at promoting goods or services.
SB140 also introduces a private right of action under the Texas Deceptive Trade Practices Act (DTPA), enabling consumers to directly sue telemarketers for violations. Key updates include:
- Statutory damages ranging from $500 to $5,000 per violation.
- Violations classified as deceptive acts under the DTPA, potentially leading to treble damages and compensation for mental anguish.
- A $5,000 fine per violation for telemarketers failing to register in Texas.
- Removal of caps on repeat claims, allowing multiple lawsuits for the same violation.
- Broader coverage of technologies compared to federal regulations, thanks to Texas’s expanded definition of Automated Dial Announcing Devices (ADAD).
These protections and updates set the stage for understanding exemptions in Texas telemarketing regulations, which will be discussed in the following sections.
Texas Telemarketing Law Exemptions Explained
Understanding exemptions under Texas telemarketing laws is crucial for distinguishing between legitimate calls and potential violations.
Common Exempt Entities and Activities
Certain businesses and organizations are exempt from the usual telemarketing rules in Texas. For instance, insurance companies operating within their licensed scope and banks or other financial institutions under regulatory supervision are not subject to these laws. These industries are already governed by strict oversight, which reduces the need for additional telemarketing restrictions.
Non-profit organizations and charities that don’t engage in commercial telephone solicitations are also exempt. This includes educational institutions and groups that qualify for IRS tax exemptions. However, if these organizations engage in commercial activities, their exemption could be revoked.
Additional exemptions include:
- Calls to individuals with whom there’s an existing business relationship, up to one year after the relationship ends.
- Debt collection calls and business-to-business calls, as long as they don’t involve fax solicitations.
- Calls made by state licensees (e.g., insurance agents) under specific conditions, such as prohibiting automated dialing systems, requiring face-to-face meetings before completing transactions, and deferring payment until after the meeting.
Other exempt activities involve selling subscriptions for newspapers, magazines, or cable services, distributing catalogs with a circulation of at least 250,000 across multiple states, and contacting consumers about maintenance or repairs for items they’ve purchased. Additionally, entities regulated by the Public Utility Commission of Texas or the FCC are exempt. However, even exempt entities must honor requests from consumers who choose not to receive further calls.
Exemptions for Third-Party Telemarketers
Things get more complicated when third-party telemarketers enter the picture. While organizations like banks, federal credit unions, and non-profits may be exempt, third-party telemarketers working on their behalf must still follow telemarketing regulations. For example:
- A telemarketing company working for a bank must comply with the Telemarketing Sales Rule.
- A for-profit firm soliciting donations for a non-profit must also adhere to these rules.
The insurance industry operates under unique circumstances due to the McCarran-Ferguson Act, which applies federal telemarketing rules only when state law doesn’t regulate the insurance business. This means that even if a call is tied to an exempt entity, the caller may still need to comply with telemarketing laws. It’s up to the exempt entity to prove that its exemption is legitimate. These distinctions have gained even more importance with the introduction of Senate Bill 140.
How Senate Bill 140 Changed Exemptions
Senate Bill 140, effective September 1, 2025, brings significant changes to Texas telemarketing laws. While existing exemptions remain intact, the bill expands the definition of telemarketing to include text messages, image messages, and other digital transmissions. This means entities previously exempt from voice call regulations, like banks, must now evaluate whether their digital campaigns comply with telemarketing rules.
The bill also emphasizes stricter enforcement and a broader interpretation of telemarketing laws to protect consumers. For businesses, this means reviewing their practices to ensure compliance with the expanded regulations. For consumers, the law provides stronger protections, regulating a wider range of communications and technologies than federal law while still preserving exemptions for legitimate business relationships and regulated industries.
How to Tell Exempt from Non-Exempt Telemarketing Calls
Knowing how to distinguish between exempt calls and regulated telemarketing is essential for protecting your rights as a consumer.
Required Caller Disclosures
Under Texas law, telemarketers must follow strict rules about what they disclose during a call. Non-exempt telemarketers are required to clearly state their name, the business they represent, and their contact information. They are also prohibited from blocking their phone number on caller ID services. Additionally, they cannot disable caller ID or provide false information about the call’s origin. On the other hand, exempt callers are required to display verifiable contact information.
Be especially cautious with calls from blocked or unknown numbers. For fax solicitations, Texas law requires the sender to include their full name, street address, and a toll-free or local phone number that can respond to inquiries. If any of this information is missing, it may indicate a violation.
Next, let’s review some warning signs that set compliant telemarketing apart from potential violations.
Warning Signs of Potential Violations
Several red flags can help you spot potential violations of Texas telemarketing laws. For example, calls made outside of approved hours may signal non-compliance. Similarly, if the caller’s purpose is unclear or they use high-pressure tactics, they may not qualify for an exemption.
The misuse of automated dial announcing devices (ADADs) is another common red flag. While some exempt organizations may use automated systems, non-exempt telemarketers face strict limitations on this technology. Additionally, as of September 1, 2025, Senate Bill 140 expands the definition of telemarketing to include text messages, image messages, and other digital communications. Be cautious of text-based solicitations from organizations claiming exemptions that do not extend to these newer forms of communication.
The table below highlights key differences between exempt and non-exempt calls.
Comparison Table: Exempt vs. Non-Exempt Calls
| Aspect | Exempt Calls | Non-Exempt Calls |
|---|---|---|
| Caller ID | Displays organization’s information; fewer restrictions | Must show accurate caller ID and cannot block numbers |
| Time Restrictions | Fewer restrictions | Calls allowed only between 9 a.m.–9 p.m. Monday–Saturday and noon–9 p.m. on Sunday |
| Required Disclosures | Minimal requirements | Must state caller’s name, business represented, and contact info |
| Do Not Call Registry | Often exempt from registry rules | Must comply with the National Do Not Call Registry |
| Typical Callers | Banks, insurance companies, or businesses with existing relationships | Third-party telemarketers and sales companies |
| Consumer Recourse | Limited to complaints with regulators | Subject to fines and lawsuits |
| Registration Requirements | Usually exempt from registration | Must register with the Texas Public Utility Commission |
Understanding these distinctions can help you quickly determine if a call is legitimate or potentially violating telemarketing laws in Texas. Violations can result in fines ranging from $500 to $10,000 per incident, and failing to register as a telemarketer carries an additional $5,000 fine per violation.
Keep in mind that even if an organization itself is exempt, any third-party telemarketers working on its behalf must follow all applicable telemarketing regulations.
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What to Do if You Suspect a Telemarketing Violation
Now that you know the difference between exempt and non-exempt calls, let’s dive into the steps you should take if you suspect a telemarketing violation.
Documenting and Reporting Violations
If you’re considering legal action, keeping detailed records is crucial. Without proper documentation, proving violations of the Telephone Consumer Protection Act (TCPA) becomes much harder. Start by saving all call logs and messages from telemarketers or debt collectors. Keep a written record for each suspicious call, noting the date, time, the caller’s identity (if available), and a summary of the conversation . If you’ve revoked consent for a specific company to contact you, make sure to save a copy of that revocation notice as well .
When you’re ready to take action, report the violations to the appropriate authorities. For unwanted calls, spoofing, or caller ID blocking, file a complaint with the Federal Communications Commission (FCC) at fcc.gov/complaints. If the issue involves telemarketers ignoring the Do Not Call list or potential telephone fraud, submit your complaint to the Federal Trade Commission (FTC). Texas residents can also file consumer complaints with the Office of the Attorney General at www.texasattorneygeneral.gov/consumer-protection/file-consumer-complaint. For unwanted text messages, forward them to 7726 (or "SPAM"). Having clear and thorough records will strengthen your case and help you assert your rights.
Your Rights and Potential Compensation
If telemarketers violate state or federal laws, Texas consumers have strong legal protections. The TCPA allows you to hold telemarketers accountable, with statutory damages ranging from $500 to $1,500 per violation. Higher penalties apply for offenses that are proven to be knowing or willful. Additionally, if your number is on the national Do Not Call list, you could recover $500 per violating call.
"A TCPA violation is the term for when a business is found to have broken the rules of TCPA in some way – such as by calling a number unsolicited and using automated marketing messages or using a robodialer to send thousands of pre-recorded messages."
– Rich Kahn, CEO of Anura
Class action lawsuits are another option, enabling groups of consumers to sue for robocalls or robotexts. Compensation in these cases can also range from $500 to $1,500 per call or text. Courts can grant injunctive relief under the TCPA, stopping illegal telemarketing practices in their tracks. For instance, in April 2023, Keller Williams paid $40 million to settle a case involving unauthorized auto-dialing, showing the serious financial risks companies face for violating TCPA regulations. If you need professional help navigating these issues, expert assistance is available.
Using ReportTelemarketer.com for Help
ReportTelemarketer.com is a platform designed to help you fight back against unwanted telemarketing calls and texts. Their team investigates reported telemarketers using specialized tools to determine whether the calls are exempt or violate consumer protection laws in Texas. They can take action on your behalf, such as sending cease-and-desist letters or filing formal complaints. Their legal team, experienced in Texas telemarketing laws, can even help you recover funds from telemarketers who have violated your rights – all without requiring any upfront payment.
Beyond legal action, the platform prioritizes your privacy, keeping your personal details secure while making reported telemarketers publicly visible to warn other consumers. They also provide educational resources to help you better understand telemarketing laws and your rights under Texas law. This combination of support and education empowers you to take control and protect yourself from unlawful telemarketing practices.
Protecting Yourself from Illegal Telemarketing
Shielding yourself from illegal telemarketing goes hand-in-hand with understanding exemption guidelines. When you’re informed about your rights and the rules telemarketers must follow, you’re better equipped to take action against unlawful practices.
Register on Official Do Not Call Lists
Start by adding your number to the National Do Not Call Registry. Keep in mind, it can take up to 31 days for the registry to block unwanted calls. If you’re in Texas, you have additional options: residents can register their residential or wireless numbers on the state’s "No Call" list. Business owners can also opt into the "Electric No Call" list to avoid telemarketing from Retail Electric Providers.
Be Wary of Unknown Callers
Don’t let a "local" caller ID fool you – it’s not always what it seems. If you don’t recognize the number, it’s best to avoid answering. If you accidentally pick up, hang up immediately instead of engaging with any prompts or messages. This simple step can help you steer clear of potential scams.
Protect Your Personal Information
Never disclose sensitive details like your account numbers, Social Security number, or passwords over the phone during unsolicited calls. If someone claims to represent an organization or government agency, verify their identity by contacting the organization directly through an official phone number or website. Once your personal data is secure, you can also turn to technology for extra protection.
Leverage Call Blocking Tools
Ask your phone provider about call-blocking options or explore trusted apps that screen and block unwanted calls. Additionally, secure your voicemail by setting a password to prevent unauthorized access. According to the FCC, billions of calls are blocked each year thanks to these tools.
Understand Rules Around AI-Generated Calls
The FCC has clarified that calls using AI-generated voices fall under the category of "artificial" voice calls as defined by the Telephone Consumer Protection Act (TCPA). This means robocall scams employing voice cloning technology are illegal.
Act Quickly When Necessary
If you suspect a call is illegal, explicitly state that you do not consent to the call and request to be added to the caller’s internal do-not-call list. For unwanted text messages, forward them to 7726 (or "SPAM") to block the sender. If the calls or messages persist, file a formal complaint with the FCC.
The FCC has taken strong enforcement actions against illegal robocallers, and the FTC can impose civil penalties of up to $51,744 for each violation of the Telemarketing Sales Rule. By staying proactive and using the tools and resources available, you can build a solid defense against illegal telemarketing.
As a Texas consumer, you have access to robust protections. Use these tools to your advantage and report violations to the appropriate authorities without delay.
FAQs
How can I tell if a telemarketing call is exempt under Texas law?
In Texas, some telemarketing calls are not subject to regulations. These exemptions apply if:
- You’ve had a business relationship with the caller within the last 12 months.
- You asked for the call or gave explicit permission beforehand.
- The purpose of the call is debt collection or it’s from a non-profit organization that isn’t selling anything.
- The caller is a licensed professional (like an insurance or real estate agent), the call involves an in-person transaction, isn’t automated, and you haven’t opted out of receiving such calls.
Calls that don’t fall under these exemptions may violate telemarketing laws. Knowing these details can help you recognize legitimate calls and take appropriate steps if necessary.
What should I do if I think a telemarketer has violated Texas laws?
If you think a telemarketer has broken Texas laws, you can report them to the Texas Public Utility Commission (PUC) or the Office of the Attorney General. Taking this step not only helps enforce consumer protection laws but also helps reduce those annoying, unwanted calls.
To file a complaint, you can contact the PUC’s customer protection division by calling 1-888-782-8477 or by using their online complaint system. Additionally, you can reach out to the Texas Attorney General’s Consumer Protection Division for further assistance. Reporting these violations plays a key role in safeguarding yourself and others from illegal telemarketing activities.
What changes did Senate Bill 140 make to telemarketing rules in Texas?
Expanded Telemarketing Rules Under Senate Bill 140
Senate Bill 140 in Texas has redefined telemarketing to cover more than just phone calls – it now includes text messages and graphic communications. This change means telemarketers must adhere to stricter regulations across these additional communication channels.
Another key element of the bill is the introduction of a private right of action. This provision empowers individuals to file lawsuits against telemarketers who break the rules, offering consumers a stronger tool to combat unwanted or illegal outreach.
