I use that product sometimes and don't smell anything. Perhaps people are using too much of it.
All things in moderation. I shouldn't smell your shower gels, body sprays, and perfumes before and aftger you leave the viccinity. The same goes for other personal care products. I use a tea tree oil product from time to time and know that a very small amount is permissable to prevent those who hate the smell from being repulsed.
If she was allergic to the smell (which I doubt, she probably just didn't like the smell with no medical condition--we all have smells that repulse us even if others aren't bothered by it) a counselor should've called the parents. Never remove a child from a class regardless of the race.