Alex Levinson says that it's illegal to determine the location or movement of a person.

Apple's lead counsel Bruce Sewell says this is not the case as the identifier is randomized, and that Apple does collect anonymous location data from iPhones in an effort to improve its own database of cell tower and WiFi hotspot locations.

See: http://arstechnica.com/apple/news/2010/07/apple-responds-to-...