RHOC's Kelly Dodd Says Being Accused of Using Cocaine Has 'Been Horrible' for Her and Her Daughter

Kelly Dodd is shooting back at claims by Vicki Gunvalson that she used illicit drugs.

The reality star, 43, spoke to PEOPLE Wednesday, two days after a preview of Sunday’s upcoming Real Housewives of Orange County season 13 reunion was released during which Gunvalson accuses Dodd of using cocaine.

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Though Dodd denied the allegation immediately to Gunvalson in the preview, she said news of the allegation has already done irreparable damage to her reputation.

“It’s been really horrible,” an emotional Dodd says. “I don’t do drugs. I don’t do cocaine. I’ve seen it ruin families, I’ve seen it affect people close to me. I’m constantly telling my daughter Jolie to avoid drugs I can’t stress it enough to her. ‘Don’t do drugs. Don’t even try it. Don’t succumb to peer pressure.’ I’m very hardcore about it. But by Vicki saying that there are all these people out there believing it.”

“Now it’s out there in the universe. You don’t think people are going to be like, ‘Maybe she does do it?’ ” Dodd adds. “This is my life. This is my name. It’s like character assassination. It’s really hurt me.”

Image zoom Kelly Dodd and Vicki Gunvalson Bravo (2)

Dodd went on to explain that it’s not just her who has been affected by the allegation. She says Gunvalson’s false claim impacted her 12-year-old daughter’s life, too.

“My daughter doesn’t watch the show, but she reads social media,” Dodd explains. “She’s seen what people are saying and it upsets her. I try to be a good example to my daughter. I can have sophomoric humor sometimes, but my daughter knows me. She knows I’m a good mom. I don’t want my daughter even thinking that at all.”

“She goes to a very conservative Catholic school. Her friends’ moms are all into the show, they’re seeing everything that’s going on. My daughter’s been crying, thinking that her friend’s parents aren’t going to let her see them because they’ll think that I do drugs.” Dodd says. “It hurts my daughter! Vicki’s a mother, she should know better.”

RELATED VIDEO: Kelly Dodd Discusses Life as a Mother

As RHOC fans know, Dodd and Gunvalson have had a rough season. The pair’s close friendship became fractured after Gunvalson helped introduce Dodd’s ex-husband to his new girlfriend. She even went on a few double dates with them and her boyfriend Steve Lodge — something Gunvalson never mentioned to Dodd.

Despite this, Dodd says she still felt blindsided by her former friend.

“I couldn’t believe she said that,’ Dodd said. “I asked her, ‘did you see me do it?’ And she said, ‘No.’ It was just a rumor that she heard. And it’s like, you don’t repeat rumors like that! She apologized for it. I think I got her so mad that that’s what came to her mouth from her mind. But she didn’t think of my daughter. She didn’t think of the consequences.”

Image zoom Kelly Dodd and Vicki Gunvalson Milla Cochran/startraksphoto.com

At the time, Dodd was able to accept Gunvalson’s apology and move on. The reunion trailer’s airing, however, changed things. “We left the reunion in a good place, but I didn’t know the repercussions it would have on me and my daughter,” Dodd says. “I didn’t know how damaging it really was. If I knew then what I knew now, I would not have forgiven her so quick.”

Asked if their friendship could be repaired, Dodd was uncertain. “For Vicki to do that to me, it’s so hurtful and irresponsible,” she said. “She is so far off base, how can I have a relationship with her?”

Gunvalson did not immediately respond to PEOPLE’s request for comment.