No, in many states it's perfectly legal to sell puppies at 7 weeks of age. I don't think the USDA approves the selling of puppies under 7 weeks in any states though. I know puppies can also be shipped at that age as well...although I wouldn't do it.
Giving him kibble is fine as long as he's doing well w/ consuming it and you're still moistening it.
I fed Wellness for quite some time. In fact, I raised a male Yorkie on it for a little over a year (I got him at 7 weeks as well, oddly) and he flourished on it, although he too wasn't keen on the taste. There are some things you can add for flavor and variety if you'd like though like I did.
-Plain/vanilla yogurt
OR
-Cottage cheese
OR
-Stage 1 baby food (meats/fruits OR veggies)
OR
-A dolop of nutrical or the like and mix in
OR
-crumble up a cube or two of a liver treat and mix well
.....there are a bunch of healthy ideas to make it more palatable for the little guy.
It is a good food though and hopefully it'll work well for you little one!