UPDATE August 16 Google Clarifies How It Tracks You Even If Location History is Turned Off (via News.Com)
From the Associated Press:
Google wants to know where you go so badly that it records your movements even when you explicitly tell it not to.
An Associated Press investigation found that many Google services on Android devices and iPhones store your location data even if you’ve used privacy settings that say they will prevent it from doing so.
Computer-science researchers at Princeton confirmed these findings at the AP’s request.
Storing location data in violation of a user’s preferences is wrong, said Jonathan Mayer, a Princeton computer scientist and former chief technologist for the Federal Communications Commission’s enforcement bureau. A researcher from Mayer’s lab confirmed the AP’s findings on multiple Android devices; the AP conducted its own tests on several iPhones that found the same behavior.
Read the Complete Report (approx. 1400 words)