The advertised geolocation of the proxies is based on its real-time geolocation information. If the website or IP checker that you are using to check your IP address shows a different geolocation, then it means that the geolocation database of the website or IP checker is outdated. For reference, here are the geolocation databases or sources according to tier (accuracy):

Tier 1: Main database of the IP Registrar: USA:Arin | EU:Ripe | Latin America:LACNIC | Africa:AFRICANET

Tier 2: Geolocation sites that use info from these major databases: Google IP Geo, Maxmind, IP2location, etc.

Tier 3: Small IP geosites/databases of smaller sites like get their information from main Geo sites like Maxmind, IPlocation, etc. and they usually go for the free or cheapest plan and this usually does not have the latest geo updates, which then causes the confusion.

The idea is that, Tier 1 databases do not auto updated their geolocation database, so if a proxy provider purchases a subnet (current owner), they are responsible in getting in touch with Tier 1 main databases to update their database with the subnet's current / latest geolocation.

Now then, the Tier 2 databases sometimes automatically update their geolocation databases based on Tier 1's databases, while also providing the owners of the IP range the possibility to update the geolocation of a subnet if needed but these changes can take a couple of days.

Lastly, the Tier 3 databases rely fully on Tier 2 databases' geolocation information, so as you can see, if a provider fails to reach out to Tier 1 database / Tier 2 database to update a geolocation of a subnet, then it's almost a given that Tier 3 databases will show inaccurate or outdated information of an IP subnet, not to mention that the changes to Tier 3 databases can sometimes take a weeks or months.

However, there are databases like Google IP database IPDB that no longer allows for the owner of the IP range to update the geo (proxy provider). They rely mainly on their own tracking / algorithm to determine the geolocation for each IP so that is totally out of a proxy provider's control, but that is usually aligned with the Tier 1 databases.
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