The committee has called for immediate action regarding the weight loss industry, citing "disturbing evidence" about the effects of risky diet programs and says there appears to be a gray area where some products and programmes escape scrutiny by any regulating body and Australian consumers are left vulnerable to deception.

The Labor Government actively campaigned on preventative health measures and commissioned a national task force to advise on ways of reducing rates of obesity, tobacco and alcohol abuse and is now under increasing pressure to act - its National Preventative Health Task force report, due out shortly is expected to recommend junk food taxes and mandatory limits on trans and saturated fat contents in foods.

Other states such as South Australia and Queensland have warned they are prepared to act unilaterally to limit junk food advertising.

The committee says the government should establish a national register of lap band surgeries which could keep track of the how successful the procedure has been for patients.

The Health Minister Nicola Roxon says the government would consider the report along with the yet-to-be-released preventative health strategy from the Preventative Health Taskforce.

Australian Medical Association (AMA) president Dr. Andrew Pesce has backed the report, but says gastric banding surgery should only be used in extreme cases.

According to the latest Australian Bureau of Statistics figures almost three quarters of men and half of all women are overweight.