Only if you use fake contacts and photos that look real. Instead whenever this is done elsewhere, there is text on the image and the names are obvious. Google can even add a page within privacy where you see the fake options before you can enable it system-wide/per-app.
The app could also detect the fake text based on general testing (after all, there's gonna be only so many variations of "Biggus Dickus") and refuse to dispense the functionality in question.
The OS could add an option to automatically generate realistic mock data. It could be tuned based on the distribution of names in the location that is revealed to the app (whether that is the real location or a mocked one).
