diff --git a/sam/service/channel.go b/sam/service/channel.go
index a9df3e88d..655d4b287 100644
--- a/sam/service/channel.go
+++ b/sam/service/channel.go
@@ -808,7 +808,7 @@ func (svc *channel) setPermissionFlags(ch *types.Channel) (err error) {
 
 	ch.CanJoin = (ch.IsValid() && isPublic) || isOwner
 	ch.CanPart = isMember
-	ch.CanObserve = ch.CanJoin
+	ch.CanObserve = (ch.IsValid() && isPublic) || isMember
 	ch.CanSendMessages = ch.CanObserve && isMember
 	ch.CanDeleteMessages = isOwner
 	ch.CanChangeMembers = isOwner