How does sodium ascorbate turn colored water into transparent?

There was this product demonstration wherein the demonstrator poured iodine into water and when he added sodium ascorbate the water again turned white. I don't understand how color gets masked? is it masked or the chemical bonds of the staining color have been altered? It was suppose to excite us about the cleansing effect of a new vitamin c product, but on the contrary it made me skeptical. I mean, why does it have to turn my body liquids to crystal clear; is this a good demonstration of how effective the product is? 'Cause it sure made me wonder if it would only alter the natural chemistry of my bodily fluids.