There is always the risk of rogue employees, but what they're probably talking about here is that they also can't be compelled to reveal the location by someone else. They probably don't want to actually say that since it might be misconstrued as trying to skirt the law or being uncooperative with law enforcement.
Isn't the explicit goal of a feature like that to be uncooperative with law enforcement? Who else is going to (attempt to) compel them to reveal user location data?
It's not that they're trying to be uncooperative with law enforcement though -- the fact that it prevents law enforcement from getting location data is a side effect of protecting privacy from everyone (marketers, hackers, etc) rather than it being the explicit purpose of keeping it from law enforcement. Which is why they probably want to be very careful about how they word it -- because some people might see it as the purpose rather than the side effect.
