I really really REALLY hope this is phrased well. Otherwise it is impossible to implement. People don't know what an algorithm is.
Sorting by date uses an algorithm. Filtering by tag uses an algorithm. Even counting out a number of posts uses an algorithm. An algorithm is not some magic oracle but just a list of instructions like a cooking recipe.
Which makes "opt out of algorithms" even more wrong.
I'm not a fan of specifying too much here. Many platforms don't track location while other fields that we can't think of in advance might be useful. Finding a more general rule that still gets the intent across might be hard but I'd rather have it a bit under-specified than suddenly requiring a social media site to track my location every time I post because someone wasn't careful enough when writing the text of a law.
Other than that, I agree 100%.