Brings me to my next question- rude?

[charlie'sdad]

That stuff happens. I'd ignore the woman when talking to her kid. Her kid, her way, can't change it.

If she spoke to my kid, I'd tell him he's fine, carry on, and continue to ignore the lady, probably stepping between her and him.

[MontananDakota]

Oh yes I do ignore her when shes talking to hers...this was the 1st time shes done it to mine.
Good advice "its fine..." i love it! thanks

[Lobo]

Tell mommy bossy to step off or you will report her to CPS.

[sparky]

I don't have kids yet but I imagine I'd probably just calmly say something like "it's ok, I told her she could" and try to leave it at that.

What Carlos said

[petitesalmon]

Maybe this would be ok if you were really close friends? My mum has 2 best friends and us kids all grew up together (always at each others houses etc) and those parents would have no hesitation telling us off for doing something, just as my mum would to their kids - but I guess it was just the relationship we had with one another - it was kind of like we all had 3 sets of parents :P
Maybe your friend thought you guys had that kind of friendship - I reckon she didn't mean any harm. Maybe don't bring it up unless it happens again then just a calm and easy going response like Carlos suggested

[Macy]

Can you sit somewhere else so you don't have to be by the negative energy? I am in the " I told her she could" camp.