Google has updated its Google Merchant Center policy to no longer disapprove the login required and restricted purchase free listings. Google said instead, Google will mark them as active but may notice the products "have limited visibility on Google."
Login Required
The "Login required" issue status means that customers visiting your store website need to provide account access information, such as entering a username and password or installing a program, before being able to view your products.
Restricted Purchase
The "Restricted purchase" issue status means that the ability to buy products on your store website is limited to certain customers as defined by location, device type, the information provided, or some other exclusive criteria. Fields like business information should be optional and content should be consistent and available to visitors in all locations.
Previously, Google Merchant Center accounts with the “Login required” or the “Restricted purchase” issue was automatically disapproved.
Now, free listings accounts with this issue status are still active, but their products have limited visibility on Google.
Please note that this policy change applies to free listings only.
Forum discussion at Twitter.