Well it's actually an American banner flag, which is somewhat correct as it's a representation of the American flag, but it's incorrect for that purpose as an insignia to represent our flag. It is used quite often for stage and backdrop displays and the like. But yeah it's not the proper American flag, so I would call foul here too.
However what I think is MORE troubling is how many people actually do not know WHAT this is. I could tell what it was the instant I saw the shot. Yes it is the incorrect item to show for flag day, since it's a "banner" not a "flag," but people questioning what it actually is concerns me deeply. I take it either people really don't get out much or - as I hope somewhat - they're saying what they say for jest or comedic effect.
