How Texas Ad Laws Impact Meta Campaigns

How Texas advertising laws affect Meta campaigns: truth-in-advertising, industry rules, new SMS and child-safety requirements, and practical compliance steps.

Published on
December 18, 2025
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Running Meta ads in Texas means following both Meta's ad policies and Texas state laws, especially the Texas Deceptive Trade Practices Act (DTPA). This law bans misleading or deceptive marketing practices, and violations can lead to serious consequences, including fines and lawsuits. Key points include:

  • Transparency is mandatory: Claims in ads must be truthful, backed by evidence, and clearly disclosed.
  • Industry-specific rules apply: Sectors like real estate, healthcare, and financial services face stricter advertising requirements.
  • Child safety and telemarketing laws: Texas laws (SB 2420 and SB 140) regulate ads targeting minors and SMS campaigns, requiring compliance with age verification and registration rules.
  • Meta approval isn’t enough: Ads approved by Meta may still violate Texas laws, leaving advertisers liable.

To comply, ensure your ads are honest, document everything, and regularly review campaigns for risks. Partnering with experts can help you navigate these complex regulations effectively.

Texas Advertising Laws That Apply to Meta Ads

Meta

Texas Deceptive Trade Practices Act (DTPA) Basics

Texas Deceptive Trade Practices Act

The Texas Deceptive Trade Practices Act (DTPA) serves as the cornerstone of consumer protection in the state, prohibiting any "false, misleading, or deceptive acts or practices" in commerce - including digital advertising[5]. For Meta ads, this means every claim must be truthful, backed by evidence, and free from ambiguity. Ads that leave out crucial details, exaggerate benefits without proof, or misrepresent pricing or terms can be flagged as deceptive. For instance, tactics like bait-and-switch offers, unverified performance claims, or hiding conditions behind bold "no-strings" promises are strictly off-limits. Ads should be clear, honest, and credible to the average Texas consumer.

Now, let’s look at how these rules apply to specific ad categories under Texas law.

Ad Categories With Stricter Texas Requirements

Some industries face heightened scrutiny under Texas law, even on platforms like Meta. Here’s how the rules break down for key sectors:

  • Health and Medical Ads: Promises of cures or prevention must be proven, and any risks or limitations must be clearly stated[5].
  • Financial Services and Earnings Opportunities: Ads must present accurate details about APRs, fees, risks, and typical outcomes - steering clear of misleading claims like "no risk"[5].
  • Real Estate Ads: Texas Real Estate Commission rules require proper broker identification, and social media ads must not create false impressions[3].
  • Employment and Recruiting Ads: Pay, hours, and benefits must be accurately represented without exaggeration[5].

Additionally, ads targeting children or promoting child-related services are subject to Texas's online child-safety bill (SB 2420). Violations of this law are treated as deceptive trade practices[5]. Telemarketing and SMS-based campaigns fall under the state's updated telemarketing law (SB 140), effective September 1, 2025. This law requires advertisers using text or multimedia messaging to register with the state and post a $10,000 bond. Non-compliance can result in DTPA violations[2][6].

These industry-specific rules highlight the unique challenges of advertising in Texas, especially compared to federal standards.

How Texas Laws Differ From Federal Standards

While Texas laws share similarities with FTC guidelines, they come with stricter enforcement and penalties. Unlike the FTC, which often resolves issues through agency actions, Texas law allows both the Attorney General and private individuals to sue for deceptive practices. This can lead to treble damages[5]. Additionally, laws like SB 140 and SB 2420 explicitly tie certain violations to DTPA liability, increasing the stakes for advertisers.

For regulated industries such as real estate, Texas imposes specific requirements that go beyond federal rules. For example, real estate ads must prominently display broker names in a font size at least half as large as that of any agent or team name[3].

Making Your Meta Campaigns Comply With Texas Law

Meta's Ad Policies and Texas Law Overlap

Meta’s advertising rules and Texas law share a common goal: ensuring that ads are honest, transparent, and free of misleading claims. Both require that ad content - whether it’s copy, images, or disclosures - accurately represents the product or service being promoted. For example, Meta prohibits false or deceptive claims, aligning closely with the Texas Deceptive Trade Practices Act (DTPA), which bans any actions that could create a "misleading impression" for consumers.

When it comes to special ad categories like housing, employment, and credit, Meta imposes stricter targeting limitations and mandates specific disclaimers. These rules echo federal and Texas anti-discrimination laws. A notable example is the DOJ–Meta housing settlement, which introduced the Variance Reduction System to curb discriminatory practices in ad delivery. Similarly, if your ad focuses on health and wellness, Meta’s evolving rules around sensitive data targeting intersect with Texas’s privacy regulations and DTPA enforcement.

Keep in mind: just because Meta approves your ad through its automated review process doesn’t mean it meets Texas legal standards. You’re ultimately responsible for ensuring your campaigns comply with state laws.

Use the checklist below to make sure your Texas-targeted campaigns are airtight.

Compliance Checklist for Texas-Targeted Campaigns

Before running Meta ads aimed at Texas audiences, verify every claim in your ad. Back up statements with solid evidence - like studies, internal data, customer testimonials (with proper permissions), or expert endorsements. Keep this evidence dated and organized, as DTPA violations can lead to steep penalties, including treble damages.

Double-check your ad copy and landing pages for transparency. Pricing details, subscription terms, trial conditions, and typical results should be clearly visible - not buried in fine print. For industries with specific regulations, include all required identifiers. For instance:

  • Real estate ads: Include broker names and license numbers.
  • Financial services ads: Display APRs and fees accurately.
  • Employment ads: Avoid overstating pay or benefits.

If your campaign involves SMS or telemarketing follow-ups, ensure compliance with Texas Senate Bill 140, which takes effect on September 1, 2025. This law requires registration, a $10,000 bond, and treats violations as deceptive trade practices. Also, make sure your privacy notices and consent banners fully disclose any use of tracking pixels, custom audiences, or cross-site data sharing.

For campaigns in special ad categories, flag the correct category in Meta’s system and avoid targeting filters tied to protected traits like race, religion, or disability. Use location targeting to focus on Texas, and ensure that any geo-specific claims are accurate and legally sound.

Once you’ve confirmed compliance, document every campaign detail to protect yourself from potential risks.

Documentation and Risk Prevention

Keep a detailed archive of all Texas-targeted campaigns, including copies of creatives, ad copy variations, targeting settings, budgets, and run dates. Store these records for at least three to five years. At Dancing Chicken, we use tools like UTM codes, dashboard tracking, and third-party platforms like Hyros or TripleWhale to validate data and provide proof for any claims made in our ads.

"We make data driven decisions and track using custom columns within your dashboard, integrating unique UTMs and tagging... so we can make the right decisions, every time." – Dancing Chicken [1]

Document every step of your approval process, noting who reviewed each ad, when it was approved, and linking it to evidence supporting your claims. Also, log how you built your audiences - whether through custom audiences, lookalikes, or exclusions - to show that discriminatory traits were not intentionally targeted. This level of documentation can shield you from scrutiny by Texas regulators or private lawsuits under the DTPA.

Make it a habit to conduct internal audits of both active and past campaigns targeting Texas. These audits can help spot compliance issues before they escalate. At Dancing Chicken, our senior strategists - who have over eight years of experience managing more than $50 million in ad spend - review account history, strategies, and creative assets to identify and address potential risks [1].

Step-by-Step Process for Texas-Compliant Meta Ads

5-Step Process for Texas-Compliant Meta Ad Campaigns

5-Step Process for Texas-Compliant Meta Ad Campaigns

Campaign Planning and Setup

When planning your campaign, ensure your offers comply with Texas laws, such as the Deceptive Trade Practices Act (DTPA). For pricing, display the full cost in USD (e.g., "$99.99") and include all associated fees like taxes, shipping, and recurring charges. If you're promoting a discount, make sure it's based on a genuine prior price and specify the duration, such as "Introductory rate for first 3 months." Use clear, verifiable language for guarantees - for example, "30-day money-back guarantee, refund of product price only, excludes shipping."

If you're advertising real estate, include the broker's name at half the size of the largest agent information. For SMS features, confirm compliance with SB 140, which requires registration and a $10,000 security deposit. Ads targeting minors must follow SB 2420 by implementing age verification and logging parental consents. Use Meta's targeting tools to exclude users under 13, and document every decision for potential audits.

Once your campaign is structured, move on to reviewing your ad creatives to ensure they meet all necessary requirements.

Ad Creative Review Process

After setting up your campaign, carefully review every creative element to ensure compliance with both Meta and Texas-specific standards. Use a DTPA checklist to verify your ads before launching. Ask questions like: Are all claims substantiated? Are any eligibility criteria, stock limits, or additional fees clearly disclosed near the main claim? Ensure your claims are backed by evidence, align with Meta’s policies, and match the terms displayed on your landing pages.

If your campaign collects data through lead forms, provide clear notices explaining what data is being collected, how it will be used, and who it will be shared with (e.g., Meta as an independent controller for pixel data). For campaigns involving minors, ensure parental consent is properly logged and stored to meet Texas child-safety requirements. Dancing Chicken’s in-house design team oversees the creative process from start to finish, ensuring headlines and calls-to-action are thoroughly reviewed before going live [1].

Regular Campaign Audits

Once your campaign is live, perform regular audits to maintain compliance. Review all Texas-targeted ad sets on a monthly or quarterly basis. Reassess ad copy and creative elements for new risks. Confirm that offers, prices, and guarantees in your ads still align with your current business terms and landing pages. Check that expired "limited-time" offers are no longer running. Keep detailed compliance records, including ad screenshots, evidence supporting claims, and updated privacy notices.

Additionally, verify that registrations and audit logs remain current. Dancing Chicken’s senior strategists conduct thorough account audits to identify any compliance or performance issues before they become major problems [1].

How Dancing Chicken Helps With Texas Meta Advertising

Dancing Chicken

Compliance Audits and Consulting

Dancing Chicken kicks things off with a free audit to uncover performance gaps and identify risks tied to Texas-specific regulations. Their team meticulously reviews all campaigns, ensuring they align with both the Texas Deceptive Trade Practices Act (DTPA) and Meta’s advertising policies. They look for issues like unclear pricing in U.S. dollars, missing disclosures for promotions, mismatches between ad promises and actual landing page content, and industry-specific risks. For example, real estate ads might unintentionally create misleading impressions, or Meta pixel retargeting could raise privacy concerns.

After the audit, they deliver a clear, prioritized action plan. This plan outlines essential compliance fixes while offering recommendations to keep your campaigns performing well. Often, these findings are discussed in a collaborative workshop or live review with your legal and marketing teams. To ensure long-term success, they help create reusable checklists and pre-launch review templates tailored for Texas-targeted Meta campaigns. They also train your team to spot DTPA-sensitive language, like absolute guarantees or unqualified savings claims. This groundwork ensures your campaigns are both compliant and effective.

Custom Ad Strategies

Once compliance is locked in, Dancing Chicken focuses on building ad strategies that thrive within Texas’ legal framework. These strategies balance the “must-haves” - such as clear terms, eligibility conditions, and upfront pricing in U.S. dollars - with creative elements that can be tested and optimized. Campaigns are tailored to target Texas audiences specifically, enabling focused monitoring and fine-tuning.

Their in-house design team, boasting 40 years of combined experience, takes charge of the creative process from start to finish. They carefully review headlines and calls-to-action to ensure they meet both Meta’s guidelines and Texas laws. For example, absolute claims like “Guaranteed results in 30 days” are swapped for more qualified statements, and any conditions for discounts are clearly highlighted instead of buried in fine print. In industries like real estate or financial services, they ensure advertisers clearly state their identity and role to avoid confusion while still delivering engaging and effective creative.

Continuous Monitoring and Updates

Dancing Chicken doesn’t stop at launching your campaigns - they stay actively involved to ensure ongoing compliance and performance. Once your ads are live, they set up recurring reviews and automated alerts to flag any performance dips or complaint spikes in Texas. Regular audits of ad copy, targeting, and landing pages are part of their process, and they provide 24/7 Slack support to keep you updated on both campaign performance and regulatory changes.

Their team keeps a close eye on legal and regulatory developments, such as updates to Texas telemarketing rules or new guidance from the Attorney General. They translate these changes into actionable updates for your Meta campaigns, like revising disclaimers or audience settings. Using custom dashboards, UTMs, and third-party tools, they analyze performance data alongside compliance metrics. This approach allows them to quickly identify underperforming or potentially risky creative elements, making adjustments in real time to keep your campaigns running smoothly and within the law.

Conclusion

Running Meta campaigns for Texas audiences comes with a unique set of challenges, requiring careful navigation of two regulatory frameworks: the state's Deceptive Trade Practices Act (DTPA) and Meta's advertising policies. The stakes are high - violating the DTPA can lead to penalties of up to three times the economic damages for knowing violations[2], while Meta has the authority to suspend or ban accounts for misleading content[4]. Staying compliant isn’t just a legal obligation; it’s essential for maintaining growth and minimizing risk.

There’s significant overlap between Meta’s policies and Texas law. Both require honesty in claims, clear disclosures, and transparency in sensitive areas like housing and healthcare. However, Texas law introduces additional layers, such as expanded telemarketing rules that cover text messaging and newer child-safety regulations. Navigating these differences requires expertise to translate legal jargon into actionable strategies for your campaigns[2][5].

This is where having the right team makes all the difference. A Meta-focused agency like Dancing Chicken can help eliminate guesswork. Their compliance audits are designed to identify and address DTPA-sensitive language before ads go live. Their creative team ensures your campaigns meet both platform and state requirements, while their ongoing monitoring keeps you ahead of evolving regulations. This approach proves that compliance and performance can work hand in hand[1].

As Texas continues to tighten its advertising laws, with new rules on digital messaging, age verification, and data sharing already in place, staying compliant requires constant vigilance. Regular audits, thorough documentation, and proactive reviews are no longer optional - they’re essential. By treating compliance as an ongoing process and partnering with experts, you can keep your campaigns both effective and legally sound as you scale.

FAQs

What’s the difference between Texas advertising laws and Meta’s ad policies?

Texas advertising laws emphasize honesty, clarity, and protecting consumers, requiring businesses to provide clear information and avoid deceptive claims. These regulations aim to promote ethical business practices and safeguard the public from misleading advertisements.

Meta’s ad policies, meanwhile, are centered around rules specific to its platform, including content guidelines, targeting restrictions, and adherence to community standards. While these policies dictate how ads are managed on Meta’s platform, Texas laws may impose additional requirements for advertisers, particularly when reaching audiences within the state.

To stay compliant, businesses need to carefully align their advertising efforts with both Texas regulations and Meta’s platform rules, ensuring there are no conflicts or breaches.

What happens if you don’t follow Texas advertising laws?

Failing to follow Texas advertising laws can result in major repercussions for your business. These can range from hefty fines and legal penalties to the suspension of your advertising accounts. But it doesn’t stop there - violations can also damage your reputation and draw more attention from regulators, which is the last thing any business wants.

To keep your operations running smoothly and avoid these pitfalls, it’s crucial to stay updated on the rules and ensure your campaigns align with legal requirements.

What steps should advertisers take to comply with Texas advertising laws?

To comply with Texas advertising laws, advertisers need to pay close attention to state-specific regulations. This means steering clear of misleading claims and including all required disclosures to keep things transparent and above board.

Consulting with legal experts who understand Texas laws can be incredibly helpful. Their guidance can ensure your campaigns meet legal standards while still achieving your business objectives. Combining this expertise with carefully crafted advertising strategies can help you navigate the legal landscape effectively.

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