Ettel said she called police and asked if the water could be sold without a permit.
She said she only "pretended" to call the police.
Ettel did say that she used a stern voice when she approached the child about selling the water without a permit. The mother replied, "On my property" and Ettel told her, "It's not your property".
Ettel was also set to be one of the subjects of a documentary called Lady Buds, a film about women in the cannabis industry. And in this latest racist incident, a black mom took matters into her own hands to capture the woman, Ettel on video trying to report her daughter for not having a permit, reports the Huffington Post. Ettel says that she contacted the building's security before pretending to call the police.
Posts of the video to Instagram and Twitter, which dubbed the woman on the phone #PermitPatty, went viral Saturday.
"This woman doesn't want to let a little girl sell some water".
Austin confronted the woman and recorded the interaction on her phone. The woman argues that permits were necessary to use charcoal to which the counter argument by many others including local police is that 911 is to be used for emergencies.
Twitter users are now calling her "Permit Patty".
Austin said she was "overwhelmed" by the positivity and support her family has received.
"We've been out before with my nieces who are full white and she didn't come out here and they were being way louder than Jordan was by herself", Austin added.
"On my property", Austin said. She wrote: "So my little cousin was selling water and didn't have a permit so this lady made a decision to call the cops on an 8 year old'".
As of Sunday morning, the video had more than 864,000 views and #PermitPatty trended on Twitter.
Alison is reportedly the CEO of a medicinal marijuana company and at least one organisation in the state, where the drug is legal, say they will no longer sell her products.
Ettel, the founder of cannabis tincture company TreatWell Health, also told HuffPost there was "no racial component" to her actions.
CNN commentator Marc Lamont Hill chimed in: 'If you call the police on an 8 year old Black child selling water, you're saying that you don't care if that child lives or dies.
In a tearful interview with Today, she said she's been getting hateful emails.
Ettel did, however, offer an apology to Austin and her daughter. Jordan was on the sidewalk outside the building selling water to gather funds in order to help her mother pay for a trip to Disneyland.
"Extremely excited because I have never gone", Jordan said.
A crying Ettel was on the Today Show Monday where she said that it wasn't about race and that she's received "All kinds of threats..."Horrible, terrible images, and death threats".