itwbennett writes "In a 13-page reply (PDF) to questions from Congressmen Ed Markey of Massachusetts and Joe Barton of Texas, Apple said iPhones running OS 3.2 or iOS 4 collect GPS data and encrypt it before sending it back to Apple every 12 hours via Wi-Fi. Attached to the GPS data is a random identification number generated by the phone every 24 hours. The information is not associated with a particular customer and Apple uses the data to analyze traffic patterns and density, it said. Apple collects such data from customers who have approved the use of location-based capabilities on the phone and who actually use an application that requires GPS."
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