Yes, there is a process to submit an app for distribution in Apple’s App Store. Developers cannot just dump anything there without undergoing Apple’s app vetting process. The few times an app that does not conform to Apple’s requirements has slipped through, they have been removed from distribution quickly.
With literally millions of app’s in the App Store though, occasionally a developer may get an app through with erroneous function. If you contact the developer about the error, problem or unexpected behavior, they will work to quickly patch it. If they don’t, report the error to the iTunes/App Store support and they will deal with it.
For example, yes there have been apps that did not release their use of location services when they were supposed to (one I recall was a weather app). But the developers either fixed it once known, or Apple pulled their app from the store.