The racers display the apartheid flag because they are in the United States for the apartheid of South Africa, the SA Human Rights (SAHRC) Wim Trengove, SC, the Equality Court on Monday.
The commission made submissions in support of the Nelson Mandela Foundation's application for the apartheid-era flag displaying hate speech.
In February last year, the foundation announced that it had applied for order declarations, which displays the old apartheid flag constituted hate speech, unfair discrimination and harassment based on race.
News24 earlier reported That Lobby Group AfriForum said in his court papers that a wide-reaching ban of the old apartheid flag would be an unconstitutional infringement of the right to freedom of expression.
Deputy CEO Ernst Roets told reporters at the court that the flag should not be banned by law, but would be condemned if done in public.
"It is the context in which the flag is displayed .. we believe it could be condemned, but it should not be banned," said Roets.
He said his group was committed to the right to freedom of expression, while active steps to combat genuine hate speech.
The Nelson Mandela Foundation, featured by Tembeka Ngcukaitobi said: "AfriForum has come as a reluctant respondent."
"On the one hand they are telling the court they're part of a civilized society and don't want offend any feelings and on the other hand they're telling the court next time you see this flag, just sit down and reflect on how your country has gone, "he continued. Ngcukaitobi submitted that flag was hurtful because it was the capacity to offend, degrade and dehumanise, because it was a symbol of crime against humanity.
Ngcukaitobi asked the court to dismiss any application that may be seeking to include the "communist flag, the gay pride flag and the ANC flag".
"[The court] should focus solely on apartheid flag and dismiss any attempts by AfriForum to any other flag, "said Ngcukaitobi.
One other interested party is the governing party, the ANC. Its Gauteng deputy chairperson Panyaza Lesufi sat in the gallery and observed during proceedings.
He told News24 that AfriForum's submissions that banning the use of the flag would be tantamount to do away with freedom of speech, were completely untrue and unfortunate.
"Freedom of expression to insult us? What a very painful freedom," he said.
"People must not equate reconciliation to stupidity. We reconciled with them because it was in the interest of the country, we are not tolerant and our tolerance has its own limits," said Lesufi.
Johannesburg Pride (Lesbian, Gay, Bisexual and Transgender).
Advocate Sga'ista Kazee submitted to the flag was "an official symbol of the old state and its use was frozen when SA adopted a new flag in 1994".
Ngcukaitobi agreed, and argued that AfriForum had created an environment for the display of the SA old flag which reminded SA of previous white privilege.
"The old flag was constituted with racial exclusivity in mind," he said.
He said while AfriForum had the right to promote its culture, it had no right to promote racism.
The Nelson Mandela Foundation's chief executive Sello Hatang said that freedom of expression like all other rights, had limitations, and we ask the court that there is no way to display this flag because of the consequences that it has.
"We are not saying it should not be used at all, like in museums and related places, showing that we also understand the limits of our rights in what we are asking for."
Twitter users following the court hearings also voiced their thoughts.
The matter is expected to continue on Tuesday.