Telemarketing Legal Updates: Quiet Hours & Compliance Tips

Telemarketing Changes: Quiet Hours and Legal Updates

Telemarketing is changing in some big ways. Lawsuits about “quiet hours” and new state rules in Texas are making things confusing for businesses. In recent months, courts have made different decisions about what counts as a “call” and how text messages fit into the rules. These changes affect how companies can reach out to customers.

Quiet Hours and Lawsuits

There’s been a rise in lawsuits about “quiet hours.” These are times when companies are not supposed to call or text people. The Federal Communications Commission (FCC) set these hours from 8 a.m. to 9 p.m. Now, some businesses are facing lawsuits for sending messages just outside these times, even if they had permission. This has caused uncertainty for many companies using telemarketing.

Confusion After McLaughlin

Since a recent case called McLaughlin, courts have been giving different answers about what counts as a “call” or “telephone solicitation.” This has left many businesses unsure of how to follow the rules. The lack of clear guidance is a challenge for companies that rely on text messaging and phone calls to reach customers.

Texas Senate Bill 140 and Its Impact

Texas has also made headlines with Senate Bill 140 (SB 140), which started on September 1, 2025. This law expanded what “telephone solicitation” means to include text messages and other electronic communications. It also allows people to sue under the Deceptive Trade Practices Act (DTPA).

Challenges to SB 140

After the bill passed, some plaintiffs challenged it in court. The Texas Attorney General defended the law but said it doesn’t apply to companies that have permission to send messages. Recently, the state clarified that businesses with consent do not need to register as telemarketers. However, this notice is not a legal decision, and lawsuits are still happening.

Opt-Out Risks for Businesses

Another important change comes from the FCC, which now says that businesses must accept opt-out requests in any reasonable way. This means if someone asks to stop receiving messages, companies must honor that request, even if it’s not in a certain format. This has led to more lawsuits, as some businesses struggle to recognize these requests.

Litigation Risks Remain

There’s ongoing concern about how businesses handle opt-out requests. The FCC is thinking about changing the rules to allow companies to set specific opt-out methods. But for now, businesses still face legal risks if they don’t comply with the new opt-out standards.

California’s Arbitration Fee Rules and Recent Case Outcomes

California has its own challenges with arbitration fees. Under the state’s rules, companies must pay arbitration fees within 30 days. If they don’t, they might be in “material breach” and could lose the right to arbitrate. This has led to disputes in court, especially in a case called Hohenshelt.

Hohenshelt Decision and Its Effects

In August, the California Supreme Court ruled that not all late payments lead to losing the right to arbitrate. Honest mistakes are okay, but companies could face penalties for willful non-payment. This ruling is good news for businesses, but they still need to be careful with their payment processes.

Ongoing Legal Issues in Website Tracking and Email Marketing

Website tracking and email marketing are also under scrutiny. In states like California and Washington, lawsuits are increasing against companies for unclear email marketing tactics. This includes misleading subject lines and discount claims that hide important details.

Trends in Email Marketing Lawsuits

These lawsuits can lead to serious penalties, and more and more businesses are getting letters from plaintiffs. As 2026 approaches, retailers need to ensure their marketing practices comply with state laws to avoid legal trouble.

Preparing for Changes in 2026

As the year comes to an end, businesses should take time to look at their practices. With all the changes and new lawsuits expected in 2026, it’s wise to make solid plans. Companies should review their telemarketing and SMS processes, update arbitration agreements, and check compliance with email marketing laws.

Steps Businesses Should Take

• Review telemarketing and SMS consent processes.
• Ensure opt-out methods are clear and compliant.
• Update arbitration agreements to specify payment timelines.
• Assess website tracking practices and privacy policies.
• Scrutinize pricing and promotional claims to prevent legal issues.

“2026 could bring even more changes. It’s important for businesses to stay prepared and compliant.”