Fatty liver is a common problem found in obese people and also sometimes in thin people. It simply means excess fat in the liver.. due to excess consumption of fats and carbohydrates and less of proteins in diet. Long term fatty liver can lead to liver damage or liver cirrhosis with problems like ascitis, jaundice, limb swelling and blood vomiting. It may lead to serious problems like renal failure, hepatic encephalopathy leading to only one treatment..i.e. liver transplant to avoid this use heavy protein diet, decrease central obesity, reduce weight. 

Diagnose it early by doing liver function tests, ultrasound abdomen and liver elastography. Prevention is better than cure.