https://www.legion.org/documents/legion/pdf/flagcode_07.pdf
There is a code pertaining to treatment of the flag, originally written in 1923. It is a code of conduct, not a law. These three parts are interesting.
“(c) The flag should never be carried flat or horizontally, but always aloft and free.
(d) The flag should never be used as wearing apparel, bedding, or drapery. It should never be festooned, drawn back, nor up, in folds, but always allowed to fall free. Bunting of blue, white, and red, always arranged with the blue above, the white in the middle, and the red below, should be used for covering a speaker's desk, draping the front of the platform, and for decoration in general.
(i) The flag should never be used for advertising purposes in any manner whatsoever. It should not be embroidered on such articles as cushions or handkerchiefs and the like, printed or otherwise impressed on paper napkins or boxes or anything that is designed for temporary use and discard. Advertising signs should not be fastened to a staff or halyard from which the flag is flown.”
Ever seen a bunch of people waving a flag horizontally at a football game? Ever seen an American flag shirt or swimsuit? Ever seen an American flag on a Budweiser can? Why no outrage over these violations of this code? I think we all know the answer and it that answer lies the problem.