This dress appears to be made to resemble the Confederate Battle Flag, not the Stars & Bars.
Here's a link that shows the difference.
http://www.usflag.org/confederate.stars.and.bars.html
Slipped while meaning to show a distinction between the Sates' flag and the battle flag. The Battle flag and States' flag are different animals, and most people wouldn't know what the States' flag looked like, or think the battle flag was the flag of the Southern states. She picked the battle flag to get a rise out of people, but that's her and her parent's choice.
Thanks for the head's up.