Is Cold Calling Illegal in Texas? A Compliance Guide

So, is cold calling illegal in Texas? The short answer is no, but with a huge asterisk. While it isn't outright banned, it's a minefield of regulations. One wrong move, and a perfectly normal sales call can become an illegal act with some hefty fines attached. Compliance isn't just a good idea; it's everything.

Unpacking Texas Cold Calling Laws

Think of the rules for cold calling in Texas like a two-layer cake. First, you have the big, foundational layer of federal laws that apply to everyone in the United States. Then, Texas adds its own layer of specific rules on top. To stay on the right side of the law, you have to satisfy both.

The entire legal framework for your outreach is a tag team effort between the feds and the state. The heavyweight champion is the federal Telephone Consumer Protection Act (TCPA), which sets the national ground rules for telemarketing. Texas then steps in with its own set of regulations, primarily through the Texas Business and Commerce Code.

This dual system dictates exactly who you can call, when you can call them, and what you need to say to stay compliant. If you want a deeper dive into how we got here, it's worth exploring the history of Do Not Call laws to see their impact.

Core Pillars of Compliance

To figure out if your cold calling strategy is above board, you need to nail a few core concepts. These are the absolute pillars of compliant outreach, and both federal and state authorities are watching them closely. Dropping the ball on any one of these can put your business in hot water.

Here's what you need to focus on:

• Do-Not-Call (DNC) Lists: This is non-negotiable. You must scrub your call lists against both the National DNC Registry and the Texas No-Call List.

• Consent Requirements: For specific types of calls—especially anything involving autodialers or robocalls—you'll need to get prior express consent from the person you're calling.

• Calling Hours: There are strict time windows for when you're legally allowed to call residential numbers.

• Caller Identification: Your reps have to be upfront from the get-go, clearly stating who they are and the company they represent.

The whole point of these regulations isn't to shut down sales completely. It's about protecting consumer privacy and cutting down on the endless barrage of unwanted, intrusive, and sometimes fraudulent calls.

To make this even clearer, here’s a quick rundown of the essential rules you need to know before your team picks up the phone in the Lone Star State.

Texas Cold Calling Legality at a Glance

This table breaks down the key requirements and the laws that enforce them, giving you a quick reference guide for your compliance efforts.

Getting these basics right is the first and most important step in building a compliant—and successful—outbound sales strategy in Texas.

Decoding the Federal Law: TCPA Essentials

Before we get into the Texas-specific rules, we have to start with the big one: the federal law that governs every single marketing call, text, and fax in the United States. This is the Telephone Consumer Protection Act (TCPA), and it’s the bedrock for all telemarketing compliance, including in Texas.

Think of it like this: federal law is the highway speed limit. Texas might have its own local rules for certain roads, but you can never, ever ignore the national limit.

Passed way back in 1991, the TCPA was designed to give consumers a break from the endless barrage of intrusive sales calls. To get why these rules are so strict, it helps to understand the different strategies consumers use to block unwanted calls today. Even though the tech has evolved, the law's core principles—consent, technology, and consumer rights—are more critical than ever. Get it wrong, and you could be looking at penalties of up to $1,500 per call.

Autodialers and Pre-recorded Messages

A huge piece of the TCPA puzzle is the technology you use to make your calls. The law puts serious clamps on Automated Telephone Dialing Systems (ATDS)—what most of us call "autodialers"—and pre-recorded or artificial voice messages, a.k.a. robocalls.

Using this tech to call a residential landline has its own set of rules, but calling a cell phone is a whole different beast. The TCPA demands prior express written consent before you can use an autodialer or send a pre-recorded marketing message to a wireless number. That's a very high bar, and it's where countless businesses trip up.

This single rule is crucial to answering, "Is cold calling illegal in Texas?" A call you dial by hand might be perfectly legal, but using an autodialer to call that exact same number without the right permission could land you in hot water.

Understanding Consent: A Tale of Two Permissions

The TCPA has two different flavors of consent, and mixing them up is a recipe for disaster. It's like the difference between someone waving you into their driveway versus handing you a signed, notarized invitation to a party inside their house.

• Prior Express Consent: This is the more casual permission. If a customer gives you their phone number during a transaction—say, on a credit application—you generally have their implied consent to call them about that specific transaction.

• Prior Express Written Consent: This is the gold standard, required for autodialed marketing calls to cell phones. It has to be a written agreement, signed by the person, that clearly says you can send them marketing messages using an autodialer or robocall. A checkbox on a web form can work, but the language has to be crystal clear.

Here's the bottom line: The technology you use and the type of phone you're calling (landline vs. cell) determine the level of consent you absolutely must have. Assuming one type of permission covers all your calls is a fast track to a compliance nightmare.

Unsolicited Texts and Faxes

Don't think the TCPA is just about voice calls. The Federal Communications Commission (FCC), the agency that enforces the TCPA, has made it clear that text messages are legally considered "calls." That means every rule about autodialers and consent applies directly to your SMS marketing campaigns.

Sending an unsolicited marketing text to a cell phone without getting prior express written consent first is a straight-up violation.

The law also covers unsolicited ads sent by fax machine, requiring either consent or an established business relationship. For any team doing outreach in Texas, it’s simple: treat texts with the same legal weight as phone calls. It's a non-negotiable part of staying on the right side of the law.

Navigating Texas State Telemarketing Rules

While federal laws like the TCPA set the national stage, Texas has its own specific script every sales team needs to memorize. Compliance doesn’t just stop with federal regulations; you absolutely have to get familiar with the state-level rules in the Texas Business and Commerce Code.

Think of it this way: the TCPA is the rulebook for the entire league, but Texas has its own stadium rules you have to obey once you’re on its turf.

These state laws add another layer of requirements, especially around the Texas No-Call List, specific calling hours, and how you identify yourself. Drop the ball on these, and you could face hefty penalties, even if you’re perfectly aligned with federal law. This is exactly why a simple question like "is cold calling illegal in Texas?" has a complicated answer—it all comes down to following both sets of regulations.

The Texas No-Call List Explained

The cornerstone of Texas telemarketing law is the Texas No-Call List. This is a state-run registry that works right alongside the National Do Not Call Registry. If you're making unsolicited sales calls to people in Texas, you have to scrub your lists against both of these databases.

It’s a classic mistake to think checking the national list is good enough. To stay in the clear in Texas, you must purchase access to the state-specific list and remove every registered number from your campaigns. The state expects you to update and scrub your lists against its registry at least once every 31 days—the same frequency required for the federal list.

State-Mandated Calling Hours and Identification

Texas law gets granular about when you can and can't call. While federal law gives you a general window, Texas tightens it up with its own precise timing, especially for more modern communication channels. You need to know these hours inside and out to avoid a violation.

This screenshot from the official Texas statutes lays out the core regulations for telemarketing.

The text here is the legal foundation for registration, bonding, and other rules that directly hit sales outreach operations in the state.

Beyond just timing, Texas demands clear and immediate identification. Within the first minute of any sales call, your rep is legally required to state:

• Their own name.

• The name of the company they work for.

• The city they are calling from.

• The reason for the call.

This isn't just a courtesy; it's the law. It’s designed to shut down deceptive tactics and ensure you’re transparent from the get-go. Many states have their own unique quirks, and it's crucial to understand these differences. For example, you can see how things compare by exploring the details of cold calling regulations in New York.

New Rules for Texts and Digital Outreach

The game completely changed on September 1, 2023, when Texas put Senate Bill 140 (SB 140) into effect. This law massively expanded the definition of a "telephone solicitation" to go way beyond old-school voice calls. It now covers text messages (SMS), multimedia messages (MMS), and other types of electronic marketing. For modern sales teams, this was a huge shift.

This legislative update means that any business sending marketing texts to Texas residents—or from a location within Texas—is now considered a telephone solicitor.

This new classification comes with some serious strings attached. Businesses now have to register with the Texas Secretary of State and post a $10,000 security bond. This rule now applies to a much wider net of companies, catching many who previously stuck to digital-only outreach.

On top of that, SB 140 creates specific "quiet hours" for all forms of solicitation, including texts. You can only send messages between 9 a.m. and 9 p.m. Monday through Saturday, and from noon to 9 p.m. on Sundays, all based on the consumer's local Texas time zone. Ignoring these rules is a direct violation of state law and can lead to some painful consequences.

Understanding Key Exemptions to Texas Laws

Navigating the web of federal and state telemarketing laws can feel like a straitjacket, but it’s not a complete lockdown on outbound calling. Both the TCPA and Texas state laws carve out specific exemptions, creating legal pathways for businesses to connect with prospects. Knowing these exceptions is just as crucial as knowing the rules themselves.

Think of these exemptions as designated "safe lanes" on the compliance highway. While the main road has strict speed limits, these lanes allow for different types of travel under specific conditions. They aren't a free pass to ignore the rules of the road, but they do provide vital flexibility when you know how to use them. For any team wondering if their specific situation makes cold calling illegal in Texas, understanding these lanes is the first step.

The three most important exemptions you need to wrap your head around are the Established Business Relationship (EBR), Prior Express Consent, and calls made to other businesses (B2B). Each one has its own set of requirements you have to nail.

The Established Business Relationship Exemption

One of the most powerful tools in your compliance toolkit is the Established Business Relationship (EBR). This rule essentially says you can call a consumer on a Do-Not-Call list as long as you have a pre-existing relationship with them. It’s the law’s way of saying, "Hey, this person already did business with you; they might reasonably expect to hear from you again."

But this relationship isn’t a lifetime pass. It has a clear expiration date.

• For Transactions: If a consumer bought something from you, the EBR lasts for 18 months from the date of their last purchase or payment.

• For Inquiries: If someone just poked around—maybe they submitted an application or asked for info but didn't buy—the window is much shorter. That EBR only lasts for three months from the day they reached out.

And here's the kicker: an EBR is instantly voided the second that person tells you to stop calling. Their direct request always trumps any business relationship you had.

Securing Prior Express Consent

Another major exemption comes from getting Prior Express Consent. This is your golden ticket. If a consumer gives you clear permission to call them, you can generally do so even if they're on every DNC list in the country.

Getting this consent isn't some casual, wink-and-a-nod agreement; it has to be clear, unambiguous, and, most importantly, documented. For example, if a prospect fills out a "Request a Demo" form on your website and plugs in their phone number, that’s a solid form of express consent for you to call them about that demo.

Crucial Takeaway: The burden of proof is always on you, the caller. You absolutely must be able to prove when and how you got that consent. Keeping meticulous records—like timestamps on web forms or detailed notes in your CRM—is non-negotiable.

This documentation is your only shield if a complaint comes your way. Without it, your claim of having consent is just your word against theirs, and that's not a fight you want to have with regulators.

The B2B Cold Calling Landscape

So, what about calling other businesses? This is where things get a bit more flexible. The strictest DNC rules were designed to protect people at home from getting unwanted sales pitches during dinner. As a result, calls made to a business landline are often exempt from those specific DNC provisions.

This gives B2B sales teams in Texas a lot more breathing room than their B2C counterparts. But don’t mistake this for a free-for-all.

A few key rules absolutely still apply to B2B outreach:

• Cell Phones: The restrictions on using autodialers and pre-recorded messages for cell phones are still in full effect. It doesn't matter if it's a personal or company-issued mobile phone.

• Internal DNC Lists: If a business contact asks you to take them off your list, you have to do it. Add them to your company’s internal do-not-call list, no exceptions.

• Deceptive Practices: All the laws that prohibit fraud and misrepresentation apply to every single call you make, whether it's B2B or B2C.

So while the field is more open for B2B cold calling, it’s a huge mistake to think it’s the Wild West. Compliance is still the name of the game.

The High Cost of Non-Compliance in Texas

It's one thing to know the rules of cold calling, but it’s another thing entirely to grasp the real-world consequences of breaking them. These aren't just minor slip-ups; they're expensive, brand-damaging mistakes that can spiral out of control with terrifying speed.

In Texas, the financial stakes for non-compliance are sky-high, turning what might seem like a simple sales call into a massive liability.

Both federal and state authorities have put some serious teeth into these regulations. A single violation can set off a chain reaction of penalties that add up fast, making even a small, poorly managed campaign a financial nightmare. This isn't about avoiding a slap on the wrist—it's about protecting your company's future.

Federal Fines Under the TCPA

The Telephone Consumer Protection Act (TCPA) is the federal government's main enforcement tool, and its penalties are no joke. The fines are calculated on a per-violation basis, which means every single illegal call or text multiplies your total penalty. This is exactly how a list of a few hundred numbers can morph into a six-figure lawsuit.

Here’s how the penalties break down:

• $500 per violation for each negligent call or text that breaks the rules.

• Up to $1,500 per violation if a court decides the violation was committed knowingly or willfully.

Just imagine you unknowingly call 100 numbers on the National Do Not Call Registry. That one mistake could cost your business a minimum of $50,000. If it’s discovered you willfully ignored the registry, that number could balloon to $150,000.

Texas State Penalties and Private Lawsuits

On top of the federal fines, Texas has its own set of rules. The Texas Attorney General is authorized to investigate complaints and slap penalties on companies that violate state telemarketing laws. This creates a two-front battle where you absolutely have to be compliant at both the state and federal levels.

These laws didn't just appear out of thin air; they were fueled by years of consumer backlash against annoying, intrusive calls. The federal TCPA was passed back in 1991 because of widespread public outrage, following the lead of states like Florida, which created the first Do Not Call list in 1987. Texas continues this trend with tough enforcement, showing a clear commitment to consumer protection. You can learn more about how Texas law protects consumers from this constant barrage of calls.

But honestly, the biggest risk often comes from everyday people, not regulators. The TCPA gives individuals the right to sue companies directly, and that has opened the door for massive, multi-million dollar class-action lawsuits.

A single complaint can be the spark that ignites a legal inferno. Attorneys who specialize in this area are pros at building class-action cases from these initial complaints, finding other affected consumers to join the lawsuit.

All of a sudden, a few illegal calls can become a legal battle representing thousands of people, with potential damages reaching catastrophic levels. These legal risks are a big reason why so many businesses now pay close attention to B2B cold calling statistics to dial in their strategies and minimize exposure.

At the end of the day, making compliance a core part of your sales culture isn't just about following the rules—it's an essential business survival strategy.

Your Practical Sales Compliance Checklist

Alright, let's move from theory to action. Knowing the law is one thing, but building a bulletproof, day-to-day process for your sales team is what really protects your business. This checklist isn't just a set of rules; it's your pre-flight check before launching any outbound campaign in Texas.

This simple diagram cuts right to the chase: you either operate by the book or you prepare for the consequences.

As you can see, the safe path is paved with consistent, diligent compliance. Even a few small slip-ups can put you on a direct path to some hefty fines.

To make this easier, I've put together a simple table that breaks down what your team needs to do, how often, and why it matters.

Essential Compliance Actions Checklist

Here’s a step-by-step checklist to ensure your team's cold calling practices in Texas are legally compliant.

This table serves as a great starting point, but let's dig into the "why" behind each of these steps.

H3: Pre-Campaign List Preparation

Compliance begins long before your team even picks up the phone. This first phase is all about data hygiene—scrubbing your lists to filter out anyone you’re legally barred from contacting. If you mess this up, your campaign is dead on arrival.

1. Scrub Against DNC Registries: Your absolute first step is to run your calling list against both the National Do Not Call Registry and the Texas No-Call List. No excuses.

2. Update Your Internal DNC List: Next, cross-reference that list with your own internal do-not-call list. This includes anyone who has ever told one of your reps, "Don't call me again."

3. Verify Consent Records: Planning on using an autodialer or a pre-recorded message? You better have documented prior express written consent for every single person on that list.

A huge mistake teams make is thinking a number is fair game just because it's not on a public DNC list. Your internal DNC list carries the same legal weight, and ignoring it is a surefire way to get into trouble.

During-Call Best Practices

Once the dialing starts, the responsibility shifts to your reps. How they conduct themselves on the call is just as critical as the prep work. These practices ensure every conversation is transparent, professional, and compliant.

For teams looking to ensure these rules are followed by seasoned pros without the management overhead, it's often worth looking into professional B2B cold calling services.

• Proper Introduction: Train your reps to clearly state their name, your company's name, and the purpose of the call within the first 30 seconds. No beating around the bush.

• Time Zone Adherence: Make sure every single call lands within the prospect's local time zone in Texas. A call at 8:30 a.m. your time could be 7:30 a.m. theirs, which is a clear violation.

• Handle Opt-Outs Immediately: If a prospect says "stop calling me," "take me off your list," or anything like it, the conversation is over. The rep needs to professionally end the call and add that number to your internal DNC list right away.

Post-Campaign and Ongoing Maintenance

Compliance isn't a one-and-done task. It’s an ongoing commitment. Building a culture of compliance through regular maintenance and training is what separates a responsible sales organization from one playing with fire.

Keeping meticulous records is a huge part of this. To help document verbal consent and opt-outs accurately, tools like the best voice recorder with transcription can be incredibly useful for quality assurance and record-keeping.

Here are the essential ongoing tasks:

• Regular List Scrubbing: Don't just scrub lists before a new campaign. You need to re-scrub your entire database against federal and state DNC lists at least every 31 days.

• Staff Training: Host regular training sessions on telemarketing laws. This isn't just for new hires; veteran reps need refreshers, especially when rules change.

• Documentation Audits: Periodically review your records. Are you properly documenting consent? Are opt-out requests being logged correctly and immediately? A quick audit can save you from a major headache down the road.

Common Questions About Texas Cold Calling

Even with all the rules laid out, things can get murky when you're in the trenches making calls. Let's tackle some of the most common questions that pop up in real-world sales situations. This is your quick-reference guide for those tricky scenarios.

Does Texas Law Apply If My Business Is Elsewhere?

Yes, absolutely. If you are dialing a Texas resident, you are playing by Texas rules. It doesn't matter if your office is in New York, California, or another country—the recipient's location is what counts.

This means you have to follow all the relevant state laws, like scrubbing your list against the Texas No-Call list and sticking to their specific calling hours. It’s a common and costly mistake to think your own state's rules are all that matter. Regulators care about protecting Texas consumers, not where your desk is.

What Is the Difference Between the National and Texas Lists?

Think of them as two separate guest lists for a party you don't want to crash. Both the National Do Not Call (DNC) Registry and the Texas No-Call List are designed to block unwanted sales calls, but they are completely separate databases. To be fully compliant, you have to check your numbers against both.

• National DNC Registry: This is the federal list run by the FTC. It covers the whole country.

• Texas No-Call List: This is the state-specific list managed by Texas authorities.

There’s definitely some overlap, but just checking one is a compliance fail waiting to happen. The best practice is to scrub your calling lists against both databases at least every 31 days.

Are B2B Cold Calls Totally Exempt From These Laws?

No, and this is a dangerous misconception. While B2B calls generally have fewer restrictions than calls to consumers, they are far from a "no rules" zone. The idea that you can do anything you want in B2B calling is completely false.

For instance, the strict TCPA rules about using autodialers or pre-recorded messages to call cell phones still apply. Since a lot of business numbers are actually cell phones these days, this rule is more relevant than ever. On top of that, if a business contact tells you to stop calling, you are legally required to add them to your internal DNC list.

The bottom line is this: while some DNC list rules might not apply to B2B calls, the core regulations around technology, consent, and honoring opt-out requests are still very much in play.

How Long Does an Established Business Relationship Last?

The Established Business Relationship (EBR) is a great tool, but it’s not a lifetime pass. It has a strict expiration date set by federal law, which Texas follows.

• After a Purchase: The EBR is good for 18 months from the date of the customer's last purchase or payment.

• After an Inquiry: If someone just asked for information but didn't buy anything, the relationship only lasts for three months.

And here's the most important part: this exemption is immediately voided the moment a customer asks to be put on your company's do-not-call list. Their direct request always wins, no matter what relationship existed before.

At Outbound System, we build and manage fully compliant, expert-led outreach campaigns that deliver qualified leads directly to your pipeline. Stop worrying about regulations and start closing deals. Book a call with our team today.