Your IP address when on WiFi almost certainly can be connected to a specific address by a databroker. That doesn't mean location shouldn't be limited in resolution, but there are other ways to get the same thing.
Isn’t is usually SSIDs that are used for location mapping of WiFi access points. The mapping cars gather that information when they’re doing street view stuff.
There is a difference between sharing your IP address with a data broker to maybe get your location (which may not even be possible with GDPR?), and having your exact GPS coordinates sent directly to your database.
Oh, you’re right of course, I was misremembering that they won’t be able to get the ssids of nearby wifi networks. However, a vpn is a solution to the ip address problem.