Teignbridge District Council has told Denise Said she is breaking equality laws.
For more than 12 years Denise Said has been taxi driving and for the past year she has proudly advertised the fact that she is a local driver with local knowledge.
But all that is not under threat.
In a letter she was told her stickers breach equality rules.
Teignbridge District Council proudly waving its own flag wants the flag removed after a complaint from a rival firm mainly employing Eastern European drivers.
In a statement it said:
Councillor Alan Connett Teignbridge Council, opposition said:
With a threat of losing her own taxi driving permit next Feburary, she has no plans to remove the sticker just yet but equally she wants to avoid the cost of a legal wrangle to the right to advertise that she's a local driver.