'Permit Patty' Resigns As CEO Of Cannabis Company After Video Of Her Threatening To Call Police On 8-Year-Old Selling Water Goes Viral

STUDIO CITY (CBSLA) — The woman dubbed "Permit Patty" for threatening to call police on an 8-year-old black girl selling water on the street has stepped down as CEO of her cannabis company following a massive online backlash that resulted in her products getting dropped by other marijuana sellers.

Several Bay Area dispensaries are now refusing to sell products made by Alison Ettel's company TreatWell Health, The San Francisco Chronicle reported Tuesday.

"It is Ms. Ettel's belief that TreatWell, its employees and patients should not have to suffer because of a situation that occurred in an escalated moment," company spokeswoman Cynthia Gonzalez is quoted as saying in the paper.

At least three marijuana dispensaries stated publicly they would stop selling TreatWell products.

"I forgot to mention that we had pulled [TreatWell's] product line as soon as we saw the video," said the manager of one San Francisco store. "We do not support that type of behavior!"

TreatWell sells pain-easing "cannabis-based tinctures in different ratios for humans and pets," The Los Angeles Times reported last year.

The producer of "Lady Buds," an upcoming documentary on women in the legal cannabis industry, said Ettel would no longer be part of the project.

Some have pointed out the irony of Ettel selling marijuana products for dogs despite the fact that cannabis is not regulated or approved for use on animals.

She told the Chronicle in 2015 that the company's practice was "kind of like 'don't ask, don't tell.'"

The online debacle began when video of Ettel appearing to call the police to report 8-year-old Jordan Rodgers for selling $2 bottles of water near AT&T Park Saturday went viral.

As Jordan's mother Erin Austin approaches Ettel, she attempts to hide behind a wall.

"She calling police on a 8-year-old little girl. You can hide all you want. The world gon' see you, boo," Austin tells her.

"Yeah, um, illegally selling water without a permit, yeah," Ettel replies.

Jordan told CBS This Morning she was selling water to raise money for a trip to Disneyland.

"Recently, I lost my job, and we were planning a trip Disneyland before that happened, and so it kind of sidelined us a little bit," said Austin. "My daughter just wanted to help."

Austin told CBS she did not know if race was a factor in the matter, but said Ettel was filled with hate for calling the police on such a young girl.

For her part, Ettel maintains she was only pretending to call the police. She said she wanted Austin to stop loudly screaming about the water for sale, which she claimed went on for hours.

In an interview with CNN, Ettel said she feels embarrassed, but said the video was taken out of context and that she has been "manipulated."

"I said, 'Do you have maybe a permit for the water you're selling? Maybe this could get her to move,'" she told CNN's Dan Simon. "She says, 'I have exactly what I need. Why don't you call and ask the police? I'm doing everything right.'"

Ettel says she has been called a racist and has received death threats, despite her claim she didn't know the race of the person yelling about the water.

Austin sees it differently.

"Just the fact that she called police on a child, that's evil," said Austin. "But to call on a child of color, knowing that police have been killing black kids, that says to me that you don't care about my child's life."

Austin told CNN the threats should stop, saying, "Nobody should be going to jail over this woman."