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Touché, I was under the assumption that you were a Forza player. Must've gotten you mixed up with our resident Long Arm of the Law, @SlipZtrEm. Anyways, I like my XBL account strictly unbanned, so I think I'll have to deny your request.
Anyways, it appears that the flag of Nazi Germany adorned the racing "Silver Arrows" only in rare occasions: namely, on intercontinental races. With this announcement the return of the two German pre-War GP cars featured in FM6, the Typ-D Auto Union and the W154 Mercedes-Benz, has been confirmed: the former model undoubtedly raced with a Nazi flag painted on it at the 1937 Vanderbilt Cup, but after some quite extensive research that I did in the past I am pretty sure I can say the latter never received the same treatment.
Regardless, the current TOU for Xbox Live prohibit the sharing of content which is inappropriate, profane, defamatory, infringing, obscene, indecent or unlawful and/or incites discrimination, hate or violence towards one person or a group because of their belonging to a race, a religion or a nation, or that insults the victims of crimes against humanity. The German swastika could undoubtedly fall in the latter category (and still is, after all, in great use amongst neo-Nazis all over the world), and possibly also in the former (at least in Germany, where cases of historically- or artistically-justified use still ended up in front of courts).
Of course in reality a lot of discretionary power is left to content moderators: while I'm sure uploading a screenshot from Wolfenstein: The New Order where a Nazi flag is depicted would not be seen as a violation of the TOU, posting a livery featuring Nazist iconography (whether or not it's historically accurate) over your Storefront would be a completely different thing, for reasons that should seem quite obvious if you played Wolfenstein (and speaking of that - Bethesda, the publishers of that game, won't allow you to upload to their mod-sharing services Fallout 4 mods featuring Nazist symbols. I guess the only Nazis the world of gaming is fine with are the ones you kill in gruesome ways?).
Tobacco or alcohol advertising is hardly in violation of the Microsoft TOU, although T10 has been so far hesitant to endorse alcohol or tobacco liveries, reguarly ignoring them in their weekly livery contests (in all likelihood, due to the possible reaction of rating boards). And as for the Imperial Japanese flag, it stands to reason that since it's still used by the Japanese Self Defense Forces (and features in the logos of companies such as the Asahi Shimbun and even American military units) its use would be considered less controversial. I guess the fact that the Japanese Empire didn't begin or end during the Showa era (and Hirohito reigned until 1989, becoming a symbol of Japan's transition to a relatively pacifist democracy in the meanwhile) plays an important part in this. You'd still get suspended quicker than you can say "banhammer" if you tried to upload a livery advertising a genital mutilation clinic, tho.
And we really have gone off topic now, haven't we?
