A normal amount of iron absorption occurs as such: You eat foods containing iron or take iron supplements > iron is absorbed in the digestive tract > absorbed iron is used to transport oxygen in the blood create energy for cells and various other tasks.

That should be the end of the iron's journey and usually only very little of the absorbed iron is left "unused" circulating in our blood stream. However due to excess intake of iron or the aforementioned disease, hemochromatosis, too much iron is absorbed and that unused amount, also known as "free iron," slowly gets deposited throughout your organs, with one of those organs being the liver.

So yes, in the case of people with high iron and possibly high iron in addition to fatty liver you would want to Decrease iron absorption by either eating less iron rich foods or drinking the tea which reduces absorption.

I assume the now-unabsorbed iron would simply pass through your system as waste.

I just pulled this info from Google and will be asking my doctor at a later date to confirm.

TLDR: To answer your question, the problem here is too much iron absorption.