Student removed from class for smelling..

My son came home from school yesterday and told me that a student in his class was removed from the classroom today because he smelled like cigarette smoke(his parents are smokers). Apparently, this was a distraction to the teacher and this student was “creating an unhealthy environment for others”. My son said this student was extremely embarrassed and upset for the rest of the day. Was the teacher right or wrong here? The school also sent out an email late last night stating that this will be a new policy... Not only kids that smell of cigarette smoke, but those who “lack proper hygiene”.