Apple updated its privacy policy today, with an important, and dare we say creepy new paragraph about location information. If you agree to the changes, (which you must do in order to download anything via the iTunes store) you agree to let Apple collect store and share "precise location data, including the real-time geographic location of your Apple computer or device."
Apple says that the data is "collected anonymously in a form that does not personally identify you," but for some reason we don't find this very comforting at all. There appears to be no way to opt-out of this data collection without giving up the ability to download apps.
Here's the full text:
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Location-Based Services
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. For example, we may share geographic location with application providers when you opt in to their location services.
Some location-based services offered by Apple, such as the MobileMe “Find My iPhone” feature, require your personal information for the feature to work.
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