Geolocation is also an issue that is on the Congressional floor under the Geolocation Privacy and Surveillance Act (aka GPS Act; H.R. 1312 & S.639). This may be something you want to follow. As it stands now The International Association of Privacy Professionals recommends you minimize your risk by collecting data that is "not immediately indentifiable as belonging to a particular individual" and, when possible, get an affirmative opt-in before collecting or sharing geolocation information.
Right now, whether you are being forced or not seems to depend on how geolocation data is classified and how you are using it. Overall, it seems in your best interest to develop the policy. Remember this is all coming down to reducing your risk of being sued. Depending on your app and its reach you may want to contact an attorney to develop a EULA to protect your interests.
Much success to you with your app!