When is access_type = Online appropriate? :OAuth2 - Google API

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When requesting OAuth credentials, I can specify the access_type to be Offline or Online.

Opting for the Online access type forces the users to approve access to my app each time they login. Why is that? Hasn't the user already approved my app?

Update #1:

I have my approval_prompt set to 'auto'.
If I just log out of Google without deleting any cookies, it doesn't prompt me again. But deleting the cookies brings back the grant screen.

Update #2:

It works fine through the OAuth Playground. http://code.google.com/oauthplayground/

Using OAuth 2.0 for Web Server Applications https://developers.google.com/accounts/docs/OAuth2WebServer

Update #3: Relevant code snippets

Helper method to generate OAuth URL

def build_auth_uri
    return @client.authorization.authorization_uri(
     :access_type => :online,
     :approval_prompt => :auto
    ).to_s 
end

Calling the Helper method in the View

<a href="<%= build_auth_uri %>">  Connect Me! </a>

Generated OAuth URL on the webpage

https://accounts.google.com/o/oauth2/auth?access_type=online&approval_prompt=auto&redirect_uri=http://localhost:3000/gclient/gcallback&response_type=code
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