iAd does feature an ‘opt out’ policy which allows you to stop your information being sent to Apple, this can be done by visiting http://oo.apple.com from your iPhone or iPod Touch, you will then be able to ot out of your location data being tracked.
To provide location-based services on Apple products, Apple and our partners and licensees may collect, use, and share precise location data, including the real-time geographic location of your Apple computer or device. This location data is collected anonymously in a form that does not personally identify you and is used by Apple and our partners and licensees to provide and improve location-based products and services. For example, we may share geographic location with application providers when you opt in to their location services.
Some location-based services offered by Apple, such as the MobileMe “Find My iPhone” feature, require your personal information for the feature to work.
We have just tested the service to see if it would work to let us opt out of iAds but it came up with an error saying we weren’t using iOS 4 (although we were), if you get it to work let us know in the comments.
via Gadget Venue