When does the "using your location in the background" message appear in iOS 8.3?

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I have just encountered a new message in the iOS 8.3 notification bar.

When running an app I'm developing from TestFlight that uses my location in the background, I see the following message in the top notification bar, in the place where the "Active hotspot" notification usually resides:

<AppName> is using your location in the background

This only happened with one app at one device, while I have many apps that use background locations across multiple iOS devices.

Why and when does this message appear? Is there a way to mitigate or eliminate it?

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