I think the way we would handle privacy issues here is that if we received such a request to locate one of our customers, we would pass the customers location information directly to local law enforcement along with the request we had received. This way, the requestor cannot use such a claim to learn private information of our customer, but yet our local cops could provide assistance if it's really required...
This would be great if the Police didn't use radios that everyone has scanners for. This is the same as cracking - if you can prompt a legitatimate query which creates a legitimate response then you can snoop the session. ...until the police finally get better radios. Apologies to those of you who live in countries where the police have caught on to this.