MP David Hinchliffe has called for action after a three-year-girl died from heart failure caused by obesity.
The girl, from East London, should have weighed around 2st 4lb but was nearer 6st.
Mr Hinchliffe, chairman of the House of Commons' Health Select Committee and Wakefield Labour MP, called for manufacturers to use a `traffic light' system on their packaging to show how much fat was contained. Red would be high in fat and green low.
Mr Hinchliffe, whose constituency covers Kirkburton and Denby Dale said: "I get the impression from talking to some of the more progressive people in the food and drinks industry that they see the public health challenge.
"They see the problems, possibly of litigation along the lines of what happened in the tobacco industry."
The Commons Health Committee has warned that obese children could be the first generation to die before their parents.
The Committee has also called for a voluntary withdrawal of TV advertising of junk food to children.