Nothing is wrong with your code.
^7
is a color code used for players to change the color of their names as they appear in onscreen text. In this case, ^7
sets the name to be white.
If you want to test this for yourself, connect to a server and change your name to something like this: ^3|SO|^7JonSkeet
and you'll see a name with multiple colors.
Many games are built off of the Quake3 engine, and thus they also use a similar system for colorizing names.