The auction house description is misleading, putting the onus on them. Simply stating a clear coat they should have said "possible restoration" in the description so the bidders would be forewarned to check the sign over.
A quick use of a black light & weak magnet should have shown restoration, and indeed if it is the one that Cold Pizza indicates it's an auction house that should know better. They should make it right.
Small auction houses that just sell an occasional sign you might begrudge for not knowing about restoration. But any auctioneer who makes it a regular part of their business should be held to a higher standard of accuracy in description(for regular sign auctions they should be held to the highest standard). It's up to the buying community to make the auctioneers responsible too, so reporting them to the BBB is a first step after initial contact with the auction advising them you are getting ready to call the BBB.
It's harder to establish a good reputation if word of mouth gets around the auction house refuses to make it right.