SANTA MONICA, Calif. -

Amid the debate swirling within the auto industry about the company’s practices in the digital space, TrueCar announced Wednesday that it changed its billing model in Virginia to be subscription-based instead of performance-based, and changes in more states could follow.

TrueCar said it adjusted the billing model — which had charged participating dealers a $299 fee for each new car sold using TrueCar — in Virginia to make sure it was following proper regulatory protocol in the state.

Dealers in the state have been notified of this change.

The company said it worked with Virginia regulators and called the adjustment “a meaningful step towards seamlessly providing greater transparency and quality service to car buyers and dealers alike while also working within existing regulatory requirements.”

TrueCar said it has been talking with other states’ regulators about the billing model, as well, and plans to continuing doing so. The company also noted that it will bring about, if necessary, other business practice changes (mostly dealing with dealer pricing and advertising) “on a state-by-state basis.”

Regarding Wednesday’s announcement, founder and chief executive officer Scott Painter had this to say: “TrueCar is committed to never putting our dealer partners at risk, which means we will always work closely with regulators to identify a workable solution or either suspend service.

“We also want consumers and dealer partners to know that it’s business as usual in Virginia and price guarantees will be honored at TrueCar dealerships,” he added.

Stay tuned to Auto Remarketing for additional details about this company.