'Permit Patty' Leaves CEO Cannabis Job Amid Viral Video Backlash

"Permit Patty," the white woman captured on video accused of threatening to call police on a black girl for selling water on a sidewalk without a permit, has reportedly stepped down as CEO of her California cannabis company this week after receiving backlash from the viral video.

Alison Ettel resigned as chief executive of TreatWell Health, the company’s spokeswoman said on Tuesday. The news comes after several marijuana dispensaries in the Bay Area reportedly began pulling the cannabis company’s products from their shelves after learning the company’s founder was "Permit Patty."

The San Francisco woman was caught on video last weekend allegedly calling police on an 8-year-old girl for selling water without a permit. The video has since sparked the "Permit Patty" moniker and several online memes mocking the woman.

"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," spokeswoman Cynthia Gonzalez said in a statement, according to the San Francisco Chronicle.

Ettel’s choice to step down from the cannabis-infused medical products company comes amid backlash from the online community calling the San Francisco native a "bully" among other things.

"Compassion is supposed to be at the forefront of this industry, and to see the way this has played out — with a complete disregard for a child’s well-being — I think it was a disappointment," Katie Rabinowitz, general manager of Magnolia Oakland, told the paper Monday.

The video, posted to Instagram on Saturday, shows Ettel on a cell phone outside her San Francisco apartment. The woman recording the video accused Ettel of calling police on her daughter for selling bottles of water outside her apartment building without a permit. The incident has roiled the internet and many have accused Ettel of racism.

"It has tarnished my name, but also the company’s name,” Ettel told CNN News. "They are actually going out there and bullying people and telling people to pull our things off the shelf and to boycott, even if they are not even customers at that location. They are getting harassed."