I nearly changed my name for this, the shame is so bad
My 3 year old has always had a great ear for negatives and swearwords. We honestly don't swear at home much or in the car, if at all. Our oldest son latched on to the odd bad word, but nothing like as eagerly as son number two.
For an awful two weeks in the summer, my toddler's favourite phrase on being told off by me, was 'you f bitch'. This culminated in the following delightful experience: I had to run after him on a beach at Broadstairs - he had bolted to investigate the small fairground there. On carrying him back to base camp, he repeatedly shouted at full throttle 'you fbitch'. The beach was crowded of course.
Telling this to my husband, he said I should have slapped him to shock him into silence. It did cross my mind at the time but I couldn't face the thought of giving the captive audience on the beach even more to be horrified about.
I nearly started a thread about this here ie 'should you slap your toddler to silence them if they swear badly in public?' but thought, no, don't do it - too contentious :0
Anyway, ignoring the phrase worked, sort of, and after a a few weeks it left his vocabulary, to be replaced first by 'bl* wasps' (it was hot on holiday) and now 'you dips*t' said to anyone he doesn't like the look of. Luckily he doesn't say these things very often and not very clearly, so I think the recipients are unaware they have been sworn at (apart from the horrific Broadstairs incident and he was swearing at me luckily). I always try and check recipient's faces for signs of upset, and will say sorry if they have noticed, but if all seems OK I just say 'come along now' in a stern voice and drag the toddler off. Then I'll tell him off for shouting or whatever else he's done that was naughty, but not mention the bad words themselves. Don't want them to seem powerful and worthy of being singled out.
If you find yourself getting upset and your ds is loving this, Lynne33, I suppose my advice is to be thick skinned and quickly and firmly remove her from the situation. Then do your telling off at a distance and say sorry yourself to the person your daughter has shouted abuse at.
I have to admit, though, that as my toddler gets older and more aware, I'm going to try getting him to say sorry himself to the person he has sworn at. Don't know how this will go down at all.