In addition to brick-and-mortar sex shops in Texas, Bill HB 1549 could affect online adult retailers around the world.
(NOTE: This story appears in the February 2025 issue of SE Magazine.)
Republican Rep. Hillary Hickland is eager to protect Texas children from seeing “obscene devices” on the shelves of big box stores, inspiring a bill banning the sale of adult products in places like Walmart and Target. If passed, the bill would have a significant impact on adult retailers, and not just those based in Texas. Despite the products bearing packaging far more discreet than anything you’ll find wrapped around a three-pack of men’s boxers just a few aisles over, some politicians are convinced that having the most vanilla sex toys in existence sold next to the lube and condoms is corrupting our children.
Bill HB 1549 aims to regulate the sale and distribution of adult products in Texas, only allowing businesses classified as “sexually oriented” to carry them, which has understandably raised significant concerns about privacy, business regulations and consumer rights. Novelty stores selling adult-themed products may also be impacted by the bill.
“This kind of legislation could potentially result in some brick and mortar stores being classified as sexually oriented businesses that weren’t previously, which could push them out of their current location,” shares industry resource Meghan Thomas. “I think it would depend on how much a specific area wants to push back, but as we all know, this already happens now.”
The specifics will likely evolve throughout the legislative process, but as it stands now, the bill would impact how adult products are marketed, sold and delivered to Texas consumers in an attempt to protect minors from exposure to adult content and products, having a profound effect on how online and brick-and-mortar adult businesses operate.
Possible regulations as a result of this bill
Age verification requirements:
One of the most notable regulations proposed in this bill is stricter age verification requirements for anyone purchasing adult products either online or in-store. If the bill is passed, adult retailers may need to install new systems to ensure customers are of legal age, such as government approved in-store ID scanners or online age verification tools.
While age verification in stores is nothing new, similar online systems are more invasive, bringing up concerns for consumer privacy. In an industry where discretion is vital, retailers will likely see a reduction in consumer trust and a decrease in sales, especially online.
Customer sales reports:
Furthering privacy concerns, this bill could also require adult retailers to submit detailed sales reports, including customer demographics and purchasing habits. While the intention behind such a provision may be to monitor and regulate the industry, it raises serious concerns regarding data security, especially given the sensitive nature of the products sold. It’s just another aspect of the bill that would undermine the confidentiality that many customers expect when purchasing adult products.
Ban on certain marketing practices:
As if marketing isn’t difficult enough in this industry, Hickland’s bill could impose new restrictions on how adult businesses market their products. Advertising targeted to minors or advertising in places where minors are likely to see it could become illegal. Ultimately, this would force adult stores in Texas and online retailers around the world to make changes to their marketing strategies and advertising placements.
This move not only threatens to stigmatize sexual wellness but also jeopardizes the progress we’ve made in normalizing these products.
— Loretta Goodling
Potential impacts on the adult retail industry
Increased operational costs:
If HB 1549 is passed, adult retailers will face higher operational costs as they implement new age verification systems, adjust marketing strategies and comply with reporting requirements. Smaller businesses that don’t have the resources to make these kinds of investments will struggle to compete with larger retailers and may be forced to close altogether. Additionally, retailers can face a civil penalty of up to $5,000 for each violation and other legal troubles if they fail to comply with any of the new requirements, adding to the financial strain for small business owners.
Complications for online adult retailers:
Even if an online retailer is based outside of Texas, they could still be subject to the restrictions outlined in this bill. Depending on what regulations are in the final bill, you may need to make changes to your digital marketing strategies and stop advertising in online spaces where minors in Texas can be exposed to them, including social media platforms.
Additionally, this bill could impose new disclosure or labeling requirements on adult products sold to customers in Texas. Online retailers based outside of the state would need to update their websites and product listings to ensure they comply with these provisions in order to avoid fines.
Fewer sales:
To adhere to the bill’s age verification requirements, online adult stores around the world may also need to implement an age verification tool on their website or adjust the store’s shipping methods so that a customer’s age is verified at the point of delivery. To comply would not only be a burden for business owners, but they must also consider how customers living outside of Texas will be impacted by these changes.
Consider this. If you require age verification to make a purchase on your website, will your customers be willing to scan their IDs and give a facial recognition program access to their webcam? Or are they more likely to shop elsewhere? Most likely, they’ll shop elsewhere, further exacerbating the financial burden for small business owners. Instead of complying with new regulations, we can expect most online retailers based elsewhere to deny sales to customers in Texas, restricting resident access to sex toys.
Pushback from advocacy groups:
Fortunately for adult retailers, given the controversial nature of some of the bill’s provisions, if passed, the bill will likely be challenged. Like what’s happening now regarding age verification requirements placed on porn websites (currently active in 18 states, including Texas), we can expect pushback from industry advocacy groups and consumer protection organizations. Considering the bill violates constitutional rights to privacy, we’re likely to see a drawn-out legal battle that could delay or alter the bill’s impact.
“This move not only threatens to stigmatize sexual wellness but also jeopardizes the progress we’ve made in normalizing these products,” explains Loretta Goodling, Buyer for Honey’s Place. “As an industry, we’ve faced—and defeated—laws like these before. We’ve pushed back against efforts to suppress sexual wellness and won strides toward normalization, accessibility and education. We are ready to continue the fight!”
While it remains to be seen whether Texas Bill HB 1549 will pass, adult retailers should stay informed on its progress and prepare for the potential impact it could have on operations.
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