If you check out the PDF on MS response to the location thing
http://blogs.technet.com/cfs-file.as..._-5.9.2011.pdf
you can see that
"2. Observing Location Only When the User Needs It. Microsoft only collects
information to help determine a phone’s approximate location if (a) the user has
allowed an application to access and use location data, and (b) that application
actually requests the location data. If an application does not request location,
Microsoft will not collect location data."
notice on "b" they word it pretty cleverly that if an app requests the location data, it will be "collected" so they do, per this, collect the location when "an app requests it"