A rx tech is ringing up a customer at the pharmacy and the pharmacist is explaining to her about her vagina cream,signs are posted to wait here for the customer to finish and this person ignored the sign and got right up behind her listening to every word, now knowing what her medical issue is and watching her pay with her credit card, is this considered a violation of the privacy laws or just plain rude.

It's HIPAA not HIPPA. And it was just plain rude of the customer to stand so close.