Yes.....most of the time they sell these guys tiny, very tiny, which is the bad part. He may be small NOW, but he WILL grow. How quickly I'm not entirely sure, but without the proper space TO grow he'll be stunted(someone else correct me if I'm wrong, but I do believe this is when their growth-rate slows due to lack of space, but their insides continue to grow), and this can cause all kinds of health problems.
If this is a Common Pleco, which I am almost totally positive it is judging by the coloring, then you're not going to be able to keep it in even a 10 gallon for very long without running the risk of some serious stunting problems later on, provided he survives. You could probably manage a few months, but you'll REALLY want to find someone with a large tank unless you want to invest in something 75+ gallons for him as soon as possible if you really want to save this guy.