In addition, the company released a statement which said, "We have initiated formal legal proceedings against Oregon OSHA for damages arising out of misconduct for manipulating test results."
Despite it all, many women refuse to give up the products, calling the experience "life changing."
A few days before the Oregon OSHA's findings were released, "Good Morning America" tagged along with Krystal Mansour and Ranya Douglas, two salon clients who wanted to test the Brazilian Blowout in the hopes that it could tame their wayward hair.
"I would just like to be able to wake up, do my hair without a problem," Mansour, a resident of New York's Long Island, said. "I don't want to have to wait a whole half an hour, flat-ironing, pin curling, blow-drying, relaxing."
At the salon, stylists applied the solution, which, according to the company's website, is made of amino acids and nutrients.
The stylist promised the keratin in the products would leave hair shiny and smooth finish.
After the products was applied, the stylist used a flat iron to seal the treatment.
Only 30 minutes into the process, Mansour started to complain that her eyes were burning.
"My eyes are pretty sensitive," she said. "It's just one of those things. I mean, the same thing when I get my hair colored."
But both women were more than happy with the results.
"It is bone straight," Douglas, 24, said of her hair. "It never gets this way. It never looks this polished. The edges are usually so frizzy. I can't believe my hair looks like this."
Mansour considered her treatment life-changing.
"Now I can show it to the world," she said. "I'm just so excited. This product is really awesome."
The makers of Brazilian Blowout defended their product, saying they were conducting their own investigation.
Because OSHA did not request samples directly from the company, Brazilian Blowout is questioning the results.
"At Brazilian Blowout, the safety of our products, stylists and consumers is our number one priority," the company said in a statement. "We stand behind the integrity of our product, and affirm that our professional solution is indeed formaldehyde-free."
Click HERE to read Brazilian Blowout's complete statement.
Brazilian Blowout doesn't come cheap. Treatments can range from $200 to $500, and the results can last from 10 to 12 weeks if clients use the after-care product line, according to the company's website.
Platform Artistic Salon in Oregon no longer uses the product. The product was tested in Oregon initially because of the salon's experience with it.
Salon owner Pauline Steiner told the Oregonian newspaper that she and stylist Molly Scrutton, fitness enthusiasts and running partners, suffered ill effects.
"After about three months of using the product, "we just realized our lungs felt impacted from doing the Blowout," Steiner told the newspaper. "We couldn't run the next day."
Brazilian Blowout says their case has been turned over to OSHA in California and so far no action has been taken against them.
But the salon "GMA" visited in New York City last month, NYC Dramatics, stopped using Brazilian Blowout shortly after the report and is now searching for alternatives.