The incident unfolded outside a discount shop, where Andy Lizarra says she was with her mum when he saw the older woman approach the unnamed child and "told them she wanted to see their licence to sell".
She went on: "She started harassing [her] to the point where he started to cry. A group of people went up to her and told her to leave [her] alone."
Jay Lopez saw the uproar outside the Target shop in California and told CBS Local that the older woman, who has remained anonymous, "continued to yell at her and scream at her and tell her if she didn’t have a permit, that she was going to go to jail, that sheriffs were on their way."
Mr Lopez decided to step in and asked the girl how many sweets were left.
When she said $80 worth - around £60 - he bought the lot and gave it out to the watching crowd.
Ms Lizarra added: "There are good people and bad people in this world and I saw it first hand. Screw all you ignorant people that have to complain about something."
She said that the older woman's daughter has been in contact asking her to remove the video after it's had 5.6 million views, but she has yet to hear from the girl who was there with her brother, also with items for sale.
Commenters were floored by Mr Lopez's reaction also, with Angelic Privett commenting: "That guy is awesome. He did not care that she was yelling at him while the kid was counting the candy."
Christian Baeza added: "That's what I love to see - when someone want [sic] money whether it's for a reason or not they do something to earn it."
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