Yes, Sandy will sell that information and use it to provide targeted advertising. EG if you have worms, she will announce ads and discounts for anti-worm medication.

We call it Sandy with special offers. If you'd like to pay extra you can get a special-offer-free experience. If you don't like the idea of any data collection you can just buy a cat litter box and have your own Sandy (without the added features).

Don't see how this is an issue.