In addition to changes made to its privacy policy relating to its upcoming iAd mobile advertising platform, Apple also added a section notifying users that it may collect and share users’ location data, according to a LA Times report. The passage in question reads, “To provide location-based services on Apple products, Apple and our partners and licensees may collect, use, and share precise location data, including the real-time geographic location of your Apple computer or device. This location data is collected anonymously in a form that does not personally identify you and is used by Apple and our partners and licensees to provide and improve location-based products and services.” The passage also notes that “[s]ome location-based services offered by Apple, such as the MobileMe “Find My iPhone” feature, require your personal information for the feature to work.” Apple notably added a new Location Services menu to iOS 4 giving users more fine-grained control over their sharing of location data with applications.
Apple privacy policy changes also cover location data

Charles Starrett
Charles Starrett was a senior editor at iLounge. He's been covering the iPod, iPhone, and iPad since their inception. He has written numerous articles and reviews, and his work has been featured in multiple publications.