Texas has enacted some of the strictest telemarketing laws in the U.S., aimed at protecting consumers from unsolicited calls and deceptive practices. Businesses must comply with the Texas Telephone Solicitation Act (TTSA), which mandates telemarketers to register, adhere to call time restrictions, and respect no-call lists. Violations can result in hefty penalties, including fines ranging from $500 to $10,000 per infraction.
Key updates under Senate Bill 140 (SB140) include extending telemarketing rules to cover text messages and digital communications, enabling consumers to sue violators for each instance of non-compliance. Major enforcement cases, like the $244 million judgment against Rising Eagle Capital Group LLC, highlight the aggressive stance Texas takes against violators.
Quick Takeaways:
- Telemarketers must register with the Texas Secretary of State, pay a $200 fee, and post a $10,000 deposit.
- No calls allowed before 9:00 a.m. or after 9:00 p.m. on weekdays/Saturdays, or before noon on Sundays.
- Violations of no-call lists and misuse of automated dialing systems are heavily penalized.
- SB140 allows consumers to recover damages for each violation, including mental anguish and attorney fees.
For consumers, platforms like ReportTelemarketer.com simplify reporting violations, ensuring offenders are held accountable. Businesses, on the other hand, face increased risks and must prioritize compliance to avoid severe financial and reputational damage.
State of Texas: Meet the Texas man who has made $75,000 suing telemarketers
Major Enforcement Cases Under Texas Telemarketing Laws
Texas has taken a tough stance on telemarketing violations, enforcing strict penalties to protect consumers. These cases illustrate how courts handle penalties and the financial risks businesses face when they fail to comply with the law. Below are some notable enforcement actions and the consequences for violating telemarketing regulations.
Texas Do Not Call List Violations
One major case involved Rising Eagle Capital Group LLC and its owners, John Caldwell Spiller II and Jakob Mears. In March 2023, Texas Attorney General Ken Paxton secured a massive $244,658,640 judgment against them for making billions of illegal robocalls, including calls to numbers on the Do Not Call Registry. The judgment also banned them from engaging in any telemarketing activities. This case underscores Texas’ strong commitment to protecting consumers.
"My commitment to protecting consumers is unwavering. These judgments should send a warning to all bad actors looking to take advantage of Texans. Just as Spiller and Mears are being held responsible for breaking the law, we are going to press forward to ensure that all individuals involved in these sorts of illegal schemes face justice."
The story didn’t end there. In March 2024, North Carolina Attorney General Josh Stein, along with Attorneys General from several other states, including Texas, returned to court over allegations that Spiller continued robocalling under aliases and falsified business records. This group sought an additional $122,339,320 in penalties and a complete ban on his involvement in any telephone-related services. This case highlights ongoing efforts to crack down on repeat offenders and protect consumers.
Illegal Use of Automated Dial Announcing Devices (ADADs)
Another area of enforcement involves the misuse of automated dialing technology. In the case of Thompson v. Dealer Renewal Services, the company faced legal action for making 28 calls to a Texas consumer using prohibited automated dialing systems. This case highlights the state’s focus on curbing technological abuse in telemarketing.
The court imposed a penalty of $1,500 for each violation of the Telephone Consumer Protection Act (TCPA). Since each call involved multiple violations – such as using an Automated Telephone Dialing System (ATDS) and contacting a number on the Do Not Call list – the total TCPA penalties added up to $84,000. Additionally, the company was fined $140,000 for failing to register with the Texas Secretary of State, bringing the total cost to $224,000. That’s an average of $7,910 per call, demonstrating how quickly penalties can add up. This ruling sets a clear precedent for future cases involving automated dialing violations.
Telemarketer Registration Requirement Failures
Failing to register as a telemarketer has also resulted in hefty penalties. Registration violations are relatively straightforward to prove, making them a common target for enforcement. The Thompson case also sheds light on this issue. As mentioned earlier, Texas requires telemarketers to register with the Secretary of State, and businesses that fail to do so face a $5,000 penalty per violation. In this case, the court imposed $140,000 in penalties for the company’s failure to register – treating each of the 28 illegal calls as a separate violation.
This requirement has become even more relevant with the passage of Senate Bill 140, which broadens the definition of telemarketing to include text messages and other digital communications. Companies that don’t view themselves as traditional telemarketers may still fall under these rules, and the penalties serve as a strong deterrent against operating without proper authorization.
Texas courts have shown little tolerance for repeat and varied violations, often imposing severe penalties and even permanent bans for persistent offenders. These cases serve as a clear warning to businesses about the importance of compliance with telemarketing laws.
Enforcement Tools and Legal Penalties
Texas employs a range of legal tools to address violations and hold offenders accountable. These include administrative fines, civil penalties, and private lawsuits, which collectively aim to deter misconduct and create long-term consequences for violators. These measures don’t just enforce compliance – they also highlight the broader impact on consumers and businesses.
Statutory Damages and Court Orders
Texas courts impose penalties that are tailored to specific violations. Statutory damages can range from $500 to $10,000 per violation. Additionally, the Public Utility Commission may issue administrative penalties of up to $1,000 per violation, while the Attorney General can pursue civil penalties starting at $1,000 per violation, increasing to $3,000 for willful misconduct. State licensing agencies also have the authority to investigate complaints, levy fines up to $1,000 per violation, order restitution, and even suspend or revoke licenses.
Court orders serve as another essential enforcement mechanism. For instance, in August 2023, the U.S. District Court for the Southern District of Texas issued permanent injunctions against individuals involved in illegal robocalls. This action resulted in fines exceeding $146 million and a 10-year prohibition on telemarketing activities.
"This chapter shall be liberally construed and applied to promote its underlying purpose to protect the public against false, misleading, abusive, or deceptive practices in the telemarketing business." – Texas Business & Commerce Code § 304.005
Injunctive relief allows courts to immediately stop violators from continuing illegal practices, providing swift action to protect consumers.
Private Lawsuits and Consumer Rights
Texas law empowers consumers with the ability to take legal action against violators, thanks to Senate Bill 140 (SB140). This legislation expanded consumer rights under the Texas Deceptive Trade Practices Act (DTPA), classifying violations of Chapters 304 and 305 of the Texas Business & Commerce Code as "false, misleading, or deceptive acts or practices." This classification enables individuals to directly sue businesses for violations.
Consumers can pursue various types of damages, including economic losses, compensation for mental anguish, and damages for knowing or intentional misconduct. They can also recover attorney’s fees, court costs, and seek restitution of money or property. Depending on the case, consumers may claim either actual damages or statutory damages of $500, with the potential for treble damages in instances of willful violations. A key feature of SB140 ensures that consumers can pursue damages for repeated violations, even after recovering for prior offenses.
Special protections are in place for individuals on the Texas no-call list. Telemarketers who repeatedly call these consumers are presumed to cause harm, allowing affected individuals to file civil actions for subsequent violations.
Impact on Consumers and Businesses
Recent enforcement cases have highlighted how Texas telemarketing laws are reshaping the landscape for both consumers and businesses. Senate Bill 140 (SB140) has positioned Texas as a leader in consumer protection while significantly increasing the legal risks for telemarketers.
Consumer Protection and Legal Options
Texas consumers now have stronger safeguards against unwanted telemarketing calls and electronic communications. SB140 broadens the definition of telemarketing to include not just phone calls but also text messages, image messages, and other digital outreach methods.
The legislation takes a consumer-first approach, as emphasized in its language:
"The bill explicitly states that these chapters should be ‘liberally construed’ to protect folks against false, misleading, or deceptive practices in telephone solicitation and telemarketing".
One major change is the removal of previous legal barriers that made it difficult for consumers to seek damages for repeated violations. Now, under SB140, consumers can recover damages for every individual violation, creating a strong deterrent for non-compliance. The financial penalties range from $500 to $10,000 per violation, with the possibility of treble damages for willful misconduct. Additionally, the law allows for the recovery of attorney’s fees, making it feasible for individuals to pursue claims even in cases where the financial stakes might seem small.
While these enhanced rights empower consumers, they also increase the pressure on businesses to meet compliance standards.
Business Compliance and Legal Risks
For businesses engaged in telemarketing, SB140 has dramatically altered the risk landscape:
"SB140 places Texas at the forefront of aggressive state-level telemarketing regulation. For companies relying on outbound calling or messaging to drive revenue, this is more than just a compliance update – it’s a fundamental shift in legal exposure and operational expectations." – Convoso
Non-compliance now carries steep financial consequences. Each violation can result in fines ranging from $500 to $10,000, with no cap on damages for repeat offenses. Beyond private lawsuits, the state commission or attorney general can impose fines of up to $1,000 per violation – or $3,000 for willful misconduct. For businesses running high-volume campaigns, these penalties can quickly escalate, posing a serious financial threat.
The law also expands the private right of action under the Texas Deceptive Trade Practices Act (DTPA), allowing consumers to file private lawsuits. This change increases the likelihood of litigation, forcing businesses to reevaluate their practices.
To navigate this new regulatory environment, businesses are investing heavily in compliance measures. This includes auditing outbound communication systems, upgrading technology, training staff, and seeking legal advice. Companies are placing greater emphasis on maintaining valid consent records, implementing clear opt-out mechanisms, and conducting regular reviews to identify and address potential compliance issues.
The risks of non-compliance extend beyond financial penalties. Violations can tarnish a company’s reputation, as unethical telemarketing practices often lead to negative publicity. Customers are quick to share bad experiences online, and a single infraction can have lasting consequences for a brand’s image.
On the flip side, businesses that prioritize compliance can turn these regulations into an opportunity. Companies that adopt ethical telemarketing practices and transparent communication stand to build stronger customer trust. When consumers feel respected, they are more likely to engage, leading to better conversion rates and long-term loyalty. In this sense, compliance isn’t just a legal requirement – it’s a chance to build a competitive edge in a highly regulated market.
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How ReportTelemarketer.com Supports Consumer Rights
Navigating the maze of Texas telemarketing laws and their rigorous enforcement can be overwhelming for consumers. That’s where ReportTelemarketer.com steps in. Operated by Coleman, PLLC, this platform empowers individuals by turning their complaints into actionable steps against telemarketing violators, reinforcing Texas’ commitment to consumer protection.
Reporting and Investigating Violations
ReportTelemarketer.com simplifies the process of reporting telemarketing violations through an easy-to-use online form. This form collects essential details such as the caller’s name, company, phone number, and specifics about the call. Once submitted, the platform uses advanced tools to investigate the complaint. If violations are confirmed, it goes a step further by publishing key details about the offenders. For the best results, consumers are encouraged to provide as much accurate and complete information as possible.
Legal Action and Consumer Support
The platform doesn’t just stop at investigating complaints – it actively takes legal action against non-compliant telemarketers. Whether it’s sending cease and desist letters or filing formal complaints, ReportTelemarketer.com handles these steps without charging consumers a dime. Instead of upfront fees, the platform recovers attorney’s fees directly from the telemarketers once the case is resolved. This means consumers can use the service without worrying about any financial burden.
Expertise in Telemarketing Laws
With a deep understanding of both Texas and federal telemarketing laws, including the Telephone Consumer Protection Act (TCPA) and Texas Business & Commerce Code, ReportTelemarketer.com is well-equipped to identify and address violations. This includes unauthorized text messages and even image-based spam. By combining legal expertise with consumer education, the platform ensures that individuals are both informed and protected.
Conclusion
Texas telemarketing laws provide strong protections for consumers through a mix of penalties, private legal action, and regulatory oversight. These measures work together to ensure violators are held accountable while businesses must meet rigorous compliance standards. This framework empowers consumers to take action against unlawful telemarketing practices.
Key Points for Consumers
Texas consumers enjoy robust legal rights under the state’s telemarketing laws, particularly through the Texas Deceptive Trade Practices Act (DTPA). This law allows individuals to sue telemarketers for violations, seeking compensation for both economic losses and mental anguish. Statutory damages range from $500 to $5,000 per violation, with the potential for treble damages in cases of knowing or intentional misconduct .
To strengthen any legal claims, consumers should document all interactions – recording details like dates, times, and phone numbers – and report violations to the Texas Public Utility Commission or the Texas Attorney General .
Business Compliance Requirements
Recent updates to Texas telemarketing laws have expanded the definitions to include texts and digital messages, increasing the stakes for noncompliance. Businesses must adhere to strict rules, including:
- Updating communication strategies to honor opt-out requests.
- Regularly scrubbing contact lists against Do Not Call registries.
- Ensuring third-party vendors comply with the Texas Telemarketing Sales Act.
- Training staff on updated regulations and reviewing consent mechanisms for all communications .
Senate Bill 140 (SB140) has further clarified these requirements, making compliance a critical focus for companies to avoid significant financial penalties.
Using ReportTelemarketer.com for Protection
ReportTelemarketer.com bridges the gap between consumer rights and enforcement by removing financial barriers that might deter legal action. The platform ensures that attorney fees are recovered from violators, not consumers, making legal recourse more accessible. By combining expertise in Texas and federal telemarketing laws with consumer education, it turns individual complaints into impactful enforcement actions.
For those dealing with persistent telemarketing violations, ReportTelemarketer.com offers a practical and effective solution. It empowers consumers to enforce their rights while supporting broader regulatory efforts. This approach not only aids individuals but also increases the financial consequences for businesses that fail to comply with Texas law.
Ultimately, the success of Texas telemarketing laws relies on active enforcement by both regulatory bodies and private individuals. Platforms like ReportTelemarketer.com ensure that these legal protections are not just theoretical but lead to tangible outcomes for violators.
FAQs
What new protections and rights does Senate Bill 140 (SB140) provide for Texas consumers against telemarketing violations?
Senate Bill 140 (SB140): Expanding Consumer Protections in Texas
Senate Bill 140 (SB140) takes consumer protection in Texas to the next level by broadening the definition of telemarketing violations. Now, it’s not just unwanted phone calls that fall under scrutiny – text messages, images, and other digital communications are included too. This change means more types of unwanted, intrusive contact are covered under the law.
What’s more, SB140 gives Texans a stronger voice by allowing them to file private lawsuits for violations, including claims under the Deceptive Trade Practices Act (DTPA). In some cases, consumers can even seek treble damages, which significantly raises the stakes for those breaking the rules. These updates aren’t just about accountability – they’re about making sure Texans are better shielded from unlawful and bothersome solicitations.
What are the legal and financial risks for businesses that violate Texas telemarketing laws?
Consequences of Violating Texas Telemarketing Laws
Breaking Texas telemarketing laws can lead to serious legal and financial repercussions. Businesses that fail to comply may face fines of up to $5,000 per violation for not registering as a telemarketer. Additionally, violations could trigger penalties under the Texas Deceptive Trade Practices Act (DTPA), including treble damages, awards for mental anguish, and coverage of attorney’s fees.
The Public Utility Commission (PUC) plays a key role in enforcing these laws. They have the authority to investigate violations and impose administrative or civil penalties. In more severe cases, criminal charges may be brought, especially when businesses fail to meet registration requirements. Staying compliant isn’t just about avoiding fines – it’s also essential for safeguarding your business’s reputation.
What steps can consumers take to report telemarketing violations and hold violators accountable?
Consumers have the right to report telemarketing violations by keeping a record of unwanted calls or texts. Be sure to note key details like the date, time, and the nature of the violation. This documentation is crucial when filing a complaint with authorities such as the Federal Trade Commission (FTC) or your state attorney general’s office.
If you’re looking to take legal action, you can file claims under the Telephone Consumer Protection Act (TCPA). Violators of the Do Not Call list can face penalties of up to $1,500 per violation. Consulting with legal experts can help build a stronger case and ensure those responsible are held accountable. Reporting these violations not only safeguards your rights but also helps curb unwanted telemarketing practices for everyone.
