Last updated 2026-07-11
TL;DR
Texas Business and Commerce Code Chapter 302 governs telemarketing to Texas residents and stacks state rules on top of the federal TCPA. State penalties reach $10,000 per call under Attorney General enforcement, separate from TCPA exposure. Texas also runs its own No-Call List under Chapter 304. Any team calling Texas numbers has to satisfy both frameworks at once.
What is the Texas Business and Commerce Code and how does it regulate telemarketing?
The Texas Business and Commerce Code is the state's commercial statute, and Chapter 302 is the part outbound teams have to know cold. It's titled "Telemarketing," and it does more than mirror federal law. It builds a parallel enforcement track with its own penalties. [1]
Chapter 302 defines a "telephone solicitation" broadly: any voice call or text message to a residential subscriber meant to encourage a purchase, rental, or investment. That definition pulls in a lot of outreach companies wrongly assume is exempt. If your call has a commercial purpose and the recipient is a Texas resident at home, you're almost certainly inside the statute.
Texas doesn't lean on the federal Telephone Consumer Protection Act to police telemarketing. The Office of the Attorney General enforces state rules directly, and private citizens can sue too. So a single bad call to a Texas number can spawn a TCPA claim and a separate state law claim on the same afternoon.
The statute treats "seller" and "telemarketer" as separate persons, which matters operationally. A lead generation company placing calls for a retailer is the "telemarketer." The retailer is the "seller." Both can be liable. Run a call center for a client and you don't get to hide behind the seller's name. [1]
How does Texas Chapter 302 differ from the federal TCPA?
The federal TCPA (47 U.S.C. § 227) sets a national floor. Texas Chapter 302 sits on top of it, and in several places it's stricter or just structured differently. The two frameworks apply at the same time, so passing one doesn't clear you under the other. [2]
Here's where they diverge in ways that touch daily operations:
| Issue | Federal TCPA | Texas Chapter 302 |
|---|---|---|
| Who enforces | FCC + private plaintiffs | Texas AG + private plaintiffs |
| Per-violation penalty | $500-$1,500 per call (TCPA § 227(b)) | Up to $10,000 per violation (Tex. B&C § 302.302) |
| State No-Call List | No (uses FTC national DNC list) | Yes, separate Texas No-Call List |
| Written disclosure rules | Limited (FCC rules) | Specific Texas script disclosures required |
| Calling hours | 8 a.m.-9 p.m. recipient's local time | 9 a.m.-9 p.m. recipient's local time (more restrictive start) [1] |
| Prior business relationship safe harbor | Yes, 18 months (FTC rule) | Shorter window under state rules |
The calling-hours gap catches teams most often. A call at 8:05 a.m. that's fine under federal rules is still a Chapter 302 violation, because Texas bars calls before 9 a.m. Clean rule. Easy to audit. Easy to break if your dialer doesn't know the difference.
The $10,000 ceiling under Texas law is a per-call figure, not a per-campaign figure. A run of 500 calls to Texas numbers that trips a single rule creates exposure in the millions. That's not theoretical. The Texas AG has gone after call centers for exactly that pattern. [3]
What disclosures does Texas law require at the start of a telemarketing call?
Chapter 302 requires four disclosures at the start of the call, before the pitch begins. "Promptly" here means up front, not buried after a few minutes of rapport-building. Skip any one element and you've handed a plaintiff a violation. [1]
The required disclosures under Texas B&C § 302.101 and related rules:
1. The caller's name. 2. The seller's name the call is made for. 3. The purpose of the call (that it's a sales call). 4. The nature of the goods or services being offered.
Texas also bars a telemarketer from misrepresenting their identity or the identity of the company they're calling for. Obvious on its face, but it bites lead generation operations that run calls under branded names that don't match the seller. If the caller ID reads "Customer Care Team" and the actual seller is Acme Financial Services, that gap can be a misrepresentation violation.
The disclosure rules sit next to FCC caller ID rules. Under 47 C.F.R. § 64.1601, telemarketers have to transmit caller ID and can't block it on solicitation calls. [4] Texas pushes the same transparency at the script level instead of the technical layer.
Here's the practical test. Your first fifteen seconds have to carry all four elements. Read it aloud and time it. If it can't fit without sounding rushed, your opener is too long. Tighten it.
What is the Texas No-Call List and how is it different from the national DNC list?
The Texas No-Call List runs under Chapter 304 of the Business and Commerce Code, administered by the Texas Public Utility Commission. It's a separate database from the Federal Trade Commission's National Do Not Call Registry. You have to scrub both. [5]
A Texas resident can register a number on either list or both. If a number sits only on the Texas list and you skip state-level scrubbing, you've broken state law even while you're clean on the national registry. Two databases, two checks.
To call Texas residents legally, get the do not call list data from the FTC national registry and from the Texas No-Call List. The Texas PUC charges telemarketers a fee to access the list, and that fee varies with how many area codes you need. [5]
The Texas No-Call List covers residential phone numbers, both landlines and registered mobile numbers. [6] That matters because mobile-first households are everywhere now, and plenty of older compliance programs were built back when mobile DNC registration was rare.
For the national mechanics, see our piece on the do not call list. If you scrub both lists and still draw complaints, the culprit is usually lag. Chapter 304 gives you 30 days after a number is added to the Texas list before you have to stop calling it, so a call inside that grace window can still generate a complaint even though your process worked. [5]
What are the penalties for violating Texas telemarketing law?
Texas B&C § 302.302 lets the Attorney General seek civil penalties up to $10,000 per violation, and "violation" means per unlawful call, not per enforcement action. A campaign that dials 1,000 numbers in violation of the statute has 1,000 violations. The math gets ugly fast. [1]
Beyond AG enforcement, private individuals can sue under the Texas Deceptive Trade Practices Act when telemarketing misconduct also qualifies as a deceptive trade practice. [7] That opens a treble damages door: actual damages tripled for knowing violations. Plaintiffs' attorneys know this. Texas stays busy with consumer protection litigation.
The state can also seek injunctive relief, a court order that stops your telemarketing while a case is pending. For a business that lives on outbound calls, that's worse than the fine. Freeze a 50-person call center for the 18 months a case takes to resolve and you don't have a business left.
Separate from Chapter 302, any call to a mobile phone using an autodialer or prerecorded voice without prior express written consent still triggers TCPA liability. TCPA damages for willful violations run $1,500 per call. [2] A call that breaks both the TCPA and Chapter 302 produces concurrent federal and state liability. TCPA class actions have settled for large sums. The cash app TCPA class action settlement and the credit one TCPA settlement show what happens when autodialed calls scale without real consent management.
Compliance costs less than one civil action. That's the whole calculation.
Does Texas telemarketing law apply to text messages?
Yes. Chapter 302's definition of "telephone solicitation" covers text messages sent to a residential subscriber's number for commercial purposes. [1] Texas didn't carve out SMS the way some older state statutes did by writing rules that only contemplate voice calls.
For text message marketing to Texas residents, four things apply at once: the federal TCPA's prior express written consent requirement for autodialed texts, FCC rules on content and opt-out, the Texas Chapter 302 disclosure rules, and the Texas No-Call List scrub for any registered number.
The FCC's one-to-one consent rule matters here. Under that rule, a single consent form can't authorize calls or texts from multiple sellers. Each seller needs its own affirmative consent. [8] Lead aggregators that sell Texas leads to multiple buyers now face a regime where the buyer can't legally text the lead without separate, seller-specific consent.
Texas courts haven't built much case law on SMS under Chapter 302 yet, so the statutory text and the AG's enforcement history are the main guides. What's clear: a text campaign that would violate the TCPA almost certainly violates Chapter 302 too. Passing the TCPA test doesn't clear you under state law.
What exemptions exist under Texas telemarketing law?
Chapter 302 has several exemptions, but they're narrower than most companies think on a first read. Rely on the wrong one and the $10,000-per-call ceiling is what's waiting. [1]
The common exemptions:
- Calls to businesses rather than residential subscribers. B2B outreach to a business phone number generally sits outside Chapter 302. But if the number could be a residence (cell phones, home offices), this one is risky to lean on.
- Calls where the consumer started the contact and consented to follow-up. If someone called you first or submitted a lead form asking to be contacted, the callback is typically exempt.
- Calls from entities with an established business relationship. The EBR window under Texas rules generally runs shorter than the 18-month FTC window, so confirm the specific period.
- Calls by or for a tax-exempt nonprofit. Charitable solicitations from 501(c)(3) organizations are generally exempt, though they still can't call some numbers on the Texas No-Call List.
- Calls where the entire transaction happens in person or by mail after the call (very narrow).
The B2B exemption is the one most abused. Calling a mobile phone and hoping the person uses it for work doesn't make the call B2B. If the number is registered to a residential subscriber, you're in residential territory. The exemption turns on the subscriber's status, not your guess about how they use the phone.
When in doubt, treat the call as covered. Over-complying costs almost nothing. Under-complying costs $10,000 a call.
How should a small outbound team set up a Texas-compliant calling process?
The mechanics aren't complicated, but they need deliberate process. Here's what actually works.
Segment your list by state before each campaign. Texas numbers get scrubbed against the national DNC list and the Texas No-Call List. Make that a required step, not an optional one. Most cold calling software flags area codes automatically, but area codes are a bad proxy for state now that number portability has cut the tie between area code and location. You need address data or a lookup service.
Fix your calling window. Set the dialer to block Texas-connected numbers before 9 a.m. and after 9 p.m. Central. Don't ask reps to remember. Hard-code it.
Write a compliant opener. Every Texas call needs your name, the seller's name, the fact that it's a sales call, and what's being offered. Test it. Time it. Make it the first thing out of the rep's mouth, not the part they skip when a prospect sounds warm.
Document consent. If you call mobile numbers, your prior express written consent records have to survive a subpoena. Collect consent at the source, tie it to the specific seller, and store it with a timestamp and the exact consent language.
Train reps to honor Do Not Call requests on the spot. Texas law, like the TCPA, requires it. A rep who keeps pitching after a consumer says "put me on your do not call list" just made a fresh violation.
LeadCompliant's free compliance kit includes a Texas-specific calling checklist and a consent language template that meets both TCPA and Chapter 302 requirements. For scrubbing tools, see do not call telemarketer list resources.
The setup takes a few days the first time. After that, it's maintenance.
Does the Texas law apply to out-of-state callers targeting Texas residents?
Yes, and this trips up companies based outside Texas constantly. Chapter 302 applies based on where the called party sits, not where your call center is. [1] A Florida company calling a Texas residential subscriber is bound by Texas law on that call.
The AG's office has pursued out-of-state companies. Interstate jurisdiction is settled in consumer protection law. The FTC enforces the national DNC list the same way: it doesn't matter where the call starts, it matters where it lands.
Some companies assume that being federally compliant (TCPA and FTC rules) means state law can't touch them. Wrong, and expensive. Federal law preempts state law only where Congress says so, and the TCPA does the opposite. It expressly preserves state authority to write more restrictive telemarketing rules. [2] Texas used that authority, and so have plenty of other states.
If your team calls into multiple states, build a state-by-state compliance map. Texas, Florida, Indiana, and Oklahoma all carry notable requirements beyond federal law. Texas is among the more actively enforced of them.
What records should telemarketers keep to defend against a Texas complaint?
Good records are your only real defense when a complaint lands. Here's what you want to produce fast.
Consent records with timestamps, the exact consent language the consumer agreed to, the platform where consent was captured, and the IP address or session identifier. For a cold call you're treating as EBR-exempt, keep the date of the prior transaction and documentation that the relationship meets the statutory definition.
DNC scrub logs showing you ran the number against the national registry and the Texas No-Call List before the call, with the date and time of each scrub. If the number was on the list when you called, a scrub log from two months earlier won't save you.
Call recordings, or at minimum call detail records with date, time, duration, and number dialed. If you record calls (and in Texas you should, with proper disclosure), the recordings prove your disclosure compliance.
Internal do-not-call entries. When someone asks to be removed, that entry needs to be in your system within a reasonable time. The TCPA requires honoring it within 30 days; treat that as your ceiling, not your target. Keep removal entries indefinitely.
Training records showing your reps were trained on Texas disclosure requirements and calling-hour limits.
Texas DTPA claims generally run on a two-year statute of limitations from discovery, while federal TCPA claims carry a four-year statute of limitations under 28 U.S.C. § 1658. [9] Keep records at least four years to cover the longer window.
Are there registration requirements for telemarketers operating in Texas?
Texas has no general telemarketer registration requirement the way some states do (Florida, for one, requires state registration). But certain solicitations in Texas do carry registration or bonding requirements, especially charitable solicitations and some financial services outreach. [3]
For standard commercial telemarketing, the obligations are behavioral, not registration-based: follow the disclosure rules, scrub the lists, honor opt-outs, stay inside calling hours. You don't file paperwork with Texas before you start dialing, but you do have to subscribe to the Texas No-Call List data service to access the list for scrubbing.
Texas also has the Deceptive Trade Practices-Consumer Protection Act (DTPA), a broader consumer protection regime. [7] A telemarketing call with any misleading statement about a product, price, or offer can trigger DTPA liability on its own, apart from Chapter 302. So train reps on substantive accuracy in everything they say about the product, not only on procedural compliance like disclosures and timing.
The registration question that matters for most teams is the national DNC registry. Access it through the FTC's Telemarketer Registration system and pay per area code. [10] Pair that with your Texas No-Call List subscription and both layers are covered.
Frequently asked questions
What chapter of the Texas Business and Commerce Code covers telemarketing?
Chapter 302 covers telemarketing solicitations. Chapter 304 governs the Texas No-Call List. Both sit in Title 5 of the Business and Commerce Code. If you do outbound sales to Texas residents, you need both. Chapter 302 sets the conduct rules (disclosures, hours, prohibitions), and Chapter 304 governs registration and scrubbing for the state DNC list.
Can I be sued individually under Texas telemarketing law, or only my company?
Both. The company and the individual principals or managers who direct telemarketing operations can face liability under Texas B&C Chapter 302 and the Texas DTPA. The AG can name individuals in enforcement actions when they controlled the violating conduct. Federal TCPA class actions sometimes name officers personally too. Compliance decisions made at the top carry personal exposure, more than corporate exposure.
How do I access the Texas No-Call List?
The Texas Public Utility Commission administers the Texas No-Call List. Telemarketers pay a fee to subscribe to the data, and the fee varies with the number of area codes needed. You access it through the PUC's telemarketer registration program. Scrub against it separately from the FTC's national DNC registry. Failing to check both is a common and costly mistake for out-of-state teams.
What calling hours does Texas law allow for telemarketing?
Texas Business and Commerce Code Chapter 302 limits telemarketing calls to 9 a.m. through 9 p.m. in the called party's local time zone. The federal TCPA allows calls starting at 8 a.m., so Texas is more restrictive on the morning end. Call a Texas number at 8:30 a.m. and you're TCPA-compliant but in violation of state law. Your dialer should hard-block Texas numbers before 9 a.m.
Does Texas telemarketing law apply to B2B calls?
Generally no. Chapter 302 covers solicitations to residential subscribers. A call to a business phone number for a genuine B2B purpose falls outside its scope. The risk is that many calls reach mobile phones that could be personal or residential. If you can't confirm the number belongs to a business subscriber, treat the call as residential. The exemption runs on the subscriber's status, not your assumption about how they use the phone.
What's the statute of limitations for a Texas telemarketing lawsuit?
Most Texas DTPA claims carry a two-year statute of limitations from the date the consumer discovers (or should have discovered) the violation. Separate federal TCPA claims carry a four-year statute of limitations under federal law. If a call generates both state and federal claims, the four-year window controls for TCPA purposes. Keep your call records, consent documentation, and DNC scrub logs for at least four years.
Do I need written consent to call Texas mobile numbers?
Under the federal TCPA, prior express written consent is required to call or text a mobile number using an autodialer or prerecorded voice. Texas Chapter 302 adds its own consent and disclosure layer. For any call to a mobile number, you need documented written consent that clearly authorizes the specific seller to contact that number. Since January 2025, FCC rules require that consent be one-to-one, meaning one seller per consent form.
What happens if a Texas resident on the No-Call List calls me first?
An inbound call from a consumer generally creates an inquiry or established business relationship that can permit a follow-up call, even if the number is on the No-Call List. But the exemption is narrow. The follow-up must relate to the subject of the original inquiry, must happen within a reasonable window, and you still have to honor any opt-out made during the follow-up. Document the date and nature of the inbound contact to support the exemption.
Can the Texas AG pursue my company even if we're based in another state?
Yes. The Texas AG has jurisdiction over any company that calls Texas residential subscribers, regardless of where the company sits. Interstate telemarketing enforcement is well-established. The AG has pursued out-of-state companies, especially for repeated violations affecting large numbers of Texas consumers. Federal courts in Texas also have jurisdiction over TCPA claims against out-of-state defendants calling Texas numbers.
How does the FCC's 2024/2025 one-to-one consent rule affect Texas callers?
The FCC's one-to-one consent rule, effective January 2025, requires consent for autodialed or prerecorded calls and texts to be tied to a single, named seller. A shared consent form that routes leads to multiple buyers no longer satisfies the TCPA. For Texas callers, this compounds state-level consent requirements. Each seller in a lead-generation chain must hold its own documented consent from each Texas consumer before making contact.
Is the Texas No-Call List the same as the national DNC list?
No, they're separate databases run by separate agencies. The national DNC list is managed by the FTC and covers numbers registered by consumers across all states. The Texas No-Call List is managed by the Texas Public Utility Commission and covers numbers registered specifically in Texas. You must scrub against both. A number can appear on one list but not the other, and failing to check both violates the law that governs the list you missed.
What should I do if a consumer asks to be put on my do-not-call list during a call?
Stop the pitch immediately, confirm you've noted the request, and add the number to your internal suppression list. The TCPA requires you to honor the request within 30 days. Many compliance practitioners treat it as immediate to avoid a follow-up call inside that window. Train reps to log opt-out requests in real time rather than from memory or end-of-shift notes. A second call after an opt-out request is an independent and harder-to-defend violation.
Sources
- Texas Legislature Online, Business and Commerce Code Chapter 302 (Telemarketing): Chapter 302 defines telephone solicitation, requires start-of-call disclosures, restricts calling to 9 a.m.-9 p.m., and authorizes civil penalties up to $10,000 per violation
- Cornell Law School Legal Information Institute, 47 U.S.C. § 227 (Telephone Consumer Protection Act): TCPA sets federal floor for telemarketing rules, authorizes $500-$1,500 per-violation damages, and explicitly preserves state authority to enact more restrictive requirements
- Texas Attorney General, Consumer Protection Division: Texas AG has authority to pursue civil penalties against telemarketers, including out-of-state companies, for violations of Chapter 302 and related consumer protection statutes
- Electronic Code of Federal Regulations, 47 C.F.R. § 64.1601 (Caller ID transmission requirements): FCC rules require telemarketers to transmit caller ID information and prohibit blocking caller ID on commercial solicitation calls
- Texas Legislature Online, Business and Commerce Code Chapter 304 (No-Call List): Chapter 304 establishes the Texas No-Call List covering residential phone numbers, including mobile numbers registered by consumers
- Texas Legislature Online, Business and Commerce Code Chapter 17 (Deceptive Trade Practices-Consumer Protection Act): Texas DTPA allows private plaintiffs to sue for treble damages on knowing violations; deceptive telemarketing conduct can trigger DTPA claims independent of Chapter 302
- Cornell Law School Legal Information Institute, 28 U.S.C. § 1658 (Statute of limitations for federal civil actions): Federal civil actions arising under federal statutes enacted after December 1, 1990 carry a four-year default statute of limitations; this applies to TCPA claims
- FTC, National Do Not Call Registry telemarketer information: Telemarketers must register with and pay fees to access the FTC's national DNC registry; fees are assessed per area code accessed