The revelation that iPhones are collecting information that contains location information has created a lot of press and got the attention of Congress. As I suggested in my post on the topic, Android also collections location information and transmits that information back to Google. However, Android explicitly tells users and asks users to provide permission to collect that information when they first set up their phone, as indicated in the screenshot in this Techcrunch article.
If you want to find out whether your Android phone is collecting location information tap Menu, Location & Security. You will see the screenshot shown above, which has two options for how your phone collects location information, either via wireless networks or by using GPS satellites. If you do not want your location information tracked, clear both check boxes.
Be aware that if you turn off location tracking, apps like Google Maps that show your location will not work. If you decide to turn location tracking back on, you will see the screen as shown below, telling you that you are allowing Google’s location service to collect anonymous location data, and that collection will occur even when no applications are running.