They actively prompt users to review their privacy settings.
And yet I've found with multiple Android updates on multiple devices, they can reset things like Location Services back to "On/Fine" and othere things like enable NFC without telling you that it's happened.
I do find Google's level of data collection a bit creepy, but I also don't see how they could reduce the amount of data they collect without reducing the quality of their service.
https://support.google.com/accounts/answer/6227261
https://privacy.google.com/your-data.html
https://myaccount.google.com/privacycheckup