This is a perfect example of disclosure that offers no benefit. First of all, it just tells you it's getting the data. It doesn't say what it will do with it. I might want to let an app know my location so it can give me directions. I might not want an app to know my location so it can send me advertisements for businesses nearby. None of the app stores will tell you what the app will do with the data. Some app developers put information in their app's description about what they will do with the data, but nothing requires them to, and there is no mechanism to ensure that's all they are doing with it.
Second, apps are offered on a as-is, take-it-or-leave-it basis. The buyer almost never even has a way to express their preferences, much less negotiate terms. What if I would consent to an app reading my location, but not to access my contacts? There's no way for the buyer to pick and choose. You must accept it all, or have nothing.
The app store system is such that despite the disclosures, you still just have to trust the app developers, mostly blindly, if you want to use that app. The disclosures then just become an annoyance, another blob of text to ignore with a click, like End User License Agreements.