I mean realistically it would be best to simply return "unknown location" or something of that nature. But barring that -clearly absurd- idea, set it to some place that's obviously incorrect. I propose the moon.
If they can not tell me what room in my home I am located should they simply return "the moon" as my location?
Different Services use this data for different reasons, some times simply knowing what nation the IP is from is enough, but you believe they should return "the moon" if all they can determine it is came from with in the US?