I fail to see the difference. You say it doesn't use GPS, but then continue to say that it uses location data (and thus, I assume, GPS). So which is it? Or are you saying that the app doesn't receive the user location data, only Google does?
This is misleading, but it is made so because one could potentially use data harvested through those APIs to infer your location (for example, if an app has a map of wifi networks, knowing which networks are around allows it to infer your position)