Short answer
Decide whether the app truly needs location when it is closed. If not, remove ACCESS_BACKGROUND_LOCATION from every track and use foreground location. If it does, declare one core feature in the Location permissions form, add a short video of it, show a prominent disclosure before the system prompt, and resubmit.
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Why the declaration is rejected, and the fix
01
The feature isn’t core to the app
“Your app should only request access to the location in the background if it’s required for the core functionality of the app.” Google Play Console Help, Understanding location in the background permissions
Background location for convenience, ads or analytics is refused. If the main purpose works without it, take the permission out and request location only while the app is open.
02
The declaration lists several features
“A developer may only declare one location-based feature that requires access to a location in the background, not multiple.” Google Play Console Help, Common violations (multiple features declared)
Pick the single feature with the clearest benefit, such as a child safety geofence, describe it plainly, and make sure the store listing promotes it.
03
The permission is used for ads or analytics
“You should never request location permissions from users for the sole purpose of advertising or analytics.” Google Play Console Help, Understanding location in the background permissions
An SDK that reads location in the background for ads counts against the app. Check what each SDK requests in the merged manifest, and turn location off in SDKs that don’t need it.
04
An old build still asks for it
“Remove the permission from the app manifest as well as the related source code for all APKs across all tracks (including closed and open tracks).” Google Play Console Help, Understanding location in the background permissions
Also check: removing the permission from production isn’t enough if a closed or open testing track still has a build with it. Replace those builds too, or the declaration prompt stays.
Checked against the vendor’s docs on : Play Console Help: Understanding location in the background permissions.
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Related: Google Play prominent disclosure · Google Play foreground service declaration · Google Play photo and video permissions · Google Play QUERY_ALL_PACKAGES