The woman nicknamed Permit Patty after threatening to call police on a girl selling water has resigned from the California company she founded.

Alison Ettel, a San Francisco cannabis business owner, went viral on Saturday after video emerged of her saying she was calling police on an eight-year-old black girl for “illegally selling water without a permit”. Critics across the globe dubbed her Permit Patty and uncovered her identity, and within hours, local marijuana entrepreneurs who sold Ettel’s products announced they were cutting ties.

So my little cousin was selling water and didn't have a permit so this lady decided to call the cops on an 8 year old. #PermitPatty pic.twitter.com/SiL61pnAgl — Racist Raj 🌹 (@_ethiopiangold) June 23, 2018

By Tuesday, her company, TreatWell Health, had brought on a crisis manager and announced that Ettel was stepping down, “effective immediately”.

“This decision, while not an easy one, is in the best interest of their patients. 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. And she regrets her part and is remorseful,” said the statement, sent by Cynthia Gonzales, who told the Guardian she was helping Ettel with PR and crisis management.

Gonzales declined to comment on whether Ettel would continue to have any kind of ownership of the company.

Ettel is the latest example of someone quickly facing consequences in the wake of social media backlash and accusations of racism. Her actions immediately drew comparisons to the many high-profile cases of white Americans harassing people of color with 911 calls, such as a woman nicknamed BBQ Becky, who called police on a group of black people barbecuing in an Oakland park.

A man dubbed Jogger Joe, who was caught trashing a homeless man’s belongings in California, was later arrested after another dispute with onlookers in the park.

A New York lawyer filmed berating restaurant workers for speaking Spanish lost his office space after going viral. Employees at a gym in New Jersey were fired after they were caught asking two black men to leave and calling police on them.

Ettel, who has not responded to the Guardian’s requests for comment, has defended her actions in interviews, saying she was “pretending” to call police and that she had grown frustrated at the noise the girl and her mother were making.

TreatWell’s new statement said the company was “deeply sorry” about the incident, adding: “A terrible mistake was made that affected a young girl and her family. It is important to know it was never the intention to disparage, harass or cause any harm to the child, nor her Mother.”

Ettel’s actions were “not motivated by any racist intent”, the statement continued, adding: “We are aware of the tumultuous tide of racism in this country and agree that its very existence has no place anywhere, especially in the Cannabis industry.”

The girl and her family have since earned a paid trip to Disneyland from a supporter who saw the video.