He has Ick. My fish got this disease and it is VERY difficult to get rid of once started.... somewhat like lice you must get rid of many things. I suggest calling the place where you got him and asking a few tips on how to take care of the Ick. But things that you must do w/ Ick is get medicine. Most Ick remedies are blue-powder solutions that you must pour into the water. The scientific name for this nuisance is Ichthyophthirius multifiliis, or “ich/ick” for short. It is the largest known ciliated protozoan found on fishes. It appears on the body and fins as tiny white dots resembling grains of salt; hence the other nickname, “white spot disease.” These white spots may join together to form white patches. Other signs of infestation can include excessive flashing (rubbing against the substrate or decorations), labored breathing, clamped fins, loss of appetite, lethargic and/or reclusive behavior, and hovering near filter returns. Keep in mind, however, that all of these symptoms are common with fish in distress and do not point directly to Ich. As a matter of fact, flashing often occurs after routine water changes due simply to a fluctuation in general hardness.
P.S Whatever you do please do not listen to the idiot who answered "put a few ice cubes in the tank". That will kill your fish in no time.
(Best answer? Please?)