We've done several things, and some might be superfluous, but it worked:
navigate first to Play consolse -> App content -> Sensitive app permissions -> manage Policy compliance -> select yes
Main purpose:
The app's main purpose is to [yada yada yada].
Location Access:
The app need the access to the user's location so it can [yada yada yada].
Video instructions:
You have to make this yourself. Preferably one that shows a map or/and UI elements that utilise the location data.
More info: https://support.google.com/googleplay/android-developer/answer/9799150?hl=en-GB
if the use of the app requires a user, navigate to app content -> App Access -> "All or some functionality is restricted"
Fill in login info of a test user that you have created.
example:
username: [email protected]
password: google1234
We also made a video of the onboarding flow to show that we notify the users of the location permission.
You then need to update the app and include a more comprehensive disclosure of location use. We use a full screen dialog (as opposed to simple pop up) in the onboarding flow to disclose what we use the location for. When the user click next, they are shown the available options, such as allow always/do not allow. The text we use is:
then navigate to App Content -> Privacy Policy
Copy and paste a URL to your privacy policy
This url should also be available from the location disclusure screen (such as "click here to read our privacy policy"), as well as available from the main app. In our app, we made this URL available in the settings page.
A general rule of thumb: you should be completely and 100% transparent with what your app does with the data it uses.