When must the observer in a towing vessel display a bright red or orange flag?

The observer in a towing vessel must display a bright red or orange flag whenever someone is being towed, such as in water sports like waterskiing or wakeboarding. This flag serves as a warning to other boaters that there is a person in the water, enhancing safety by alerting nearby vessels to proceed with caution. The flag should be visible from all directions and is typically displayed whenever the towing activity is in progress.