Privacy rules for setting user IDs with Google Analytics for Firebase?

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I have an iOS app in which I'd like to use Google Analytics for Firebase to associate events with user IDs. The setUserID method documentation states:

Sets the user ID property. This feature must be used in accordance with Google’s Privacy Policy

But I am unsure exactly where in the Privacy Policy the rules are outlined. There is other information on the Analytics support site as well.

I am assuming that only non-identifiable user IDs are allowed, eg. a randomly generated, unique string for each user (UID3515). Can anyone confirm?

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