Substitute House Bill No. 6874 seeks to protect veterans from exploitative practices by individuals or entities that assist with veterans benefits claims, often referred to as "benefits claim sharks." The bill introduces definitions for key terms such as "compensation," "person," "veterans benefit," and "veterans benefits matter," and establishes specific requirements for those providing assistance. These requirements include the necessity of a written agreement that outlines payment terms, prohibits compensation until a favorable resolution is achieved, and restricts the guarantee of specific outcomes or the charging of unreasonable fees. Additionally, individuals providing these services must disclose their lack of affiliation with the U.S. Department of Veterans Affairs or the Connecticut Department of Veterans Affairs and inform clients about potential free services available from other organizations.

The bill classifies violations of its 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 does not impose any fiscal impact on the state or municipalities, as the Attorney General's office is already equipped to handle enforcement. The effective date for the bill is set for October 1, 2025. Notably, the bill deletes the phrase "Except as permitted under federal law" from subsection (b)(1) for accuracy and inserts clarifications regarding the definition of veterans benefits and the conditions under which individuals may seek compensation for assistance with veterans benefits matters. Additionally, it mandates that advertisements related to veterans benefits assistance include a disclaimer similar to that required in written agreements, ensuring transparency and protecting veterans from misleading practices.