A quick google search suggests that they are used to "improve water clarity" [0], so at a guess you don't use enough of it to turn the water pink.
There's also the fact that they think it's concentrated enough that you should avoid bathing in it if you have sensitive skin. That certainly doesn't inspire confidence that you should drink it (exposing some very important skin, that's usually more sensitive).
[0] http://www.livestrong.com/article/71333-use-potassium-perman...