Some salons across the country are already providing gas masks to their employees and customers as a precaution.
"Acute symptoms can include things like irritation, nose bleed, headache. But more chronic exposure can lead to cancer. This is a known human carcinogen," said Rebecca Sutton of the Environmental Working Group
Oregon filed a similar lawsuit against the company last month after air monitoring tests at salons indicated high level of formaldehyde in the air when the product was used.
After another round of tests Oregon's Occupational Safety and Health Administration (OSHA) determined those levels were below state standards.
The company's chief executive officer insists that the product is safe. He also said it started legal proceedings against Oregon's OSHA, accusing it of manipulating test results.