Substitute House Bill No. 6874 is designed to protect veterans from exploitative practices by individuals or entities that assist with veterans benefits claims, commonly referred to as "benefits claim sharks." Set to take effect on October 1, 2025, the bill establishes specific requirements for those seeking compensation for providing advice or assistance in veterans benefits matters. Key provisions include the necessity for a written agreement that outlines payment terms, a prohibition on receiving compensation until a favorable resolution is achieved, and restrictions against guaranteeing specific outcomes. Additionally, the bill mandates clear disclosures in written agreements and advertisements, informing individuals that the services are not affiliated with the U.S. Department of Veterans Affairs or the Connecticut Department of Veterans Affairs.

The bill classifies violations of these provisions as unfair or deceptive trade practices under the Connecticut Unfair Trade Practices Act (CUTPA), empowering the Attorney General to investigate and enforce compliance. It clarifies the definition of veterans benefits and the scope of related matters, ensuring protection for individuals who have filed or intend to file a claim. The bill also introduces new regulations regarding the provision of advice for compensation, including the requirement for a written agreement that complies with federal law, a plain language summary, and a disclaimer about the non-affiliation with veterans organizations. Furthermore, it prohibits unreasonable fees and guarantees in advertising, aiming to enhance transparency and integrity in the advisory process for veterans while ensuring compliance with federal regulations.